Alabama Mortgage Broker and Consumer Credit Bonds
Alabama Mortgage Broker or Consumer Credit Bond Information
In order to comply with the State of Alabama Consumer Credit Act, Mortgage Brokers Licensing Act, all companies and sole proprietors engaged as mortgage brokers, lenders and consumer credit businesses in the state must post a surety bond. The bond amounts required is set by the state based on loan volume tiers. Please confirm your required bond amount with the state prior to requesting a quote from Surety Bonds Direct.
What Does a Mortgage Broker or Consumer Credit Bond Protect Against?
The purpose of the Alabama Mortgage Broker and Consumer Credit Bonds is to regulate mortgage lending and mortgage broker businesses and enforce all applicable statutes of the State of Alabama. The surety bond guarantees faithful performance of the duties and obligations pertaining to the licensed business and the prompt payment of any judgment which may be recovered against the bonded principal for damages or other charges arising directly or collectively from any violation of the provisions of the Alabama Consumer Credit Act, the Alabama Mortgage Broker Licensing Act, or the Alabama Secure And Fair Enforcement for Mortgage Licensing Act. The bonded principal is further obligated to pay and discharge all indebtedness for which it may become liable under the provisions of the state laws, statutes, or ordinances of the State of Alabama, or of any county, municipality, or other political subdivision.