Wyoming Mortgage Broker Bond Overview
To get licensed as a mortgage broker or mortgage lender in Wyoming you will need to obtain a mortgage broker bond in an amount of $25,000.
These licenses are regulated by the state Division of Banking, though the application process itself is conducted through the Nationwide Multistate Licensing System & Registry (NMLS).
Why do I need this bond?
The bond required of applicants for a Wyoming mortgage broker license is a type of guarantee for their compliance with all applicable state laws.
If a licensed broker or lender violates their legal obligations and thereby causes damages to any person, that person may file a claim against the bond to obtain financial compensation.
The surety that backs the bond will then investigate the nature of the claim and possibly extend compensation to claimants for as much as the full amount of the bond.
You can learn more about how surety bonds work and why you need one from our ‘What is a surety bond' guide!
See the following sections for more about the cost of this bond, how bond claims occur, and how you can get bonded!
You can also call us anytime at 866.450.3412 if you'd like to speak to one of our agents personally.
What's the Cost of the Wyoming Mortgage Broker Bond?
The cost of your bond, also known as the bond premium, is a fraction of the full amount of the required bond. The surety that issues your bond will determine your premium on the basis of several financial criteria.
How sureties determine the bond premium
An applicant's personal credit score is the primary factor that determines the cost of their bond.
Applicants with high to good credit scores can expect their surety to offer them a rate in the range of .5% to 5% of their bond amount.
Applicants that have low scores or so-called bad credit can expect to get a rate between 5% and 15%. The higher rate for such applicants is due to the increased risk perceived by sureties when underwriting bonds under such conditions. Any improvement in an applicant's credit score will usually result in an improvement in their bond rate.
Apart from credit score, sureties will often also examine some of the following factors as well:
- Personal and business financial statements
- Fixed and liquid assets
- Industry experience and record
Want to know how much your bond might cost? See the table below for an estimate of your premium based on credit score!
| Wyoming Mortgage Broker Bond Cost Based on Credit Score | |||||
|---|---|---|---|---|---|
| License type | Bond Amount | Credit Score | |||
| Above 700 | 650-699 | 600-649 | Below 599 | ||
| Mortgage broker / mortgage lender | $25,000 | $125-$312 | $188-$375 | $500-$1,250 | $1,250-$1,875 |
What Can Give Rise to a Bond Claim?
The Wyoming Mortgage Practices Act states that the required mortgage broker bond is for the benefit of anyone who suffers damages or losses as a result of a broker's or lender's actions.
When a person files a claim, the surety that issues and backs the bond will investigate the situation to assess its scope and validity. If it finds the claim to be legitimate, it will extend compensation to the claimant to cover their losses. If the compensation exceeds the amount of the bond, the surety will extend as much as the full bond amount but not more.
In return, the broker or lender will need to repay the surety for any such payment it makes. Sureties are not liable for the violations of the people or companies they issue bonds for. For this reason, it is always best to avoid giving rise to a claim in order to avoid the complexities and difficulties associated with having to resolve it!
Apply for Your Bond Here!
You can get started with your application right away - simply click on the banner below and complete our simple bond form.
One of our agents will then get in touch with you to provide you with a free and exact quote, as well as with further information about completing the application process.
If you have any further questions about the bonding requirements for Wyoming mortgage brokers, give us a call at 866.450.3412!
Further Reading
