Mortgage Company or Supervised Loan License Bond

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Fast Kansas Mortgage Surety Bond Frequently

Who is Required To Purchase a Kansas Mortgage Broker Bond?

Unlike a lot of states, the Kansas Office of the State Bank Commissioner only has a license for Mortgage companies at the business level and mortgage originators at the individual level.

There is only one bond requirement for mortgage businesses. And the Office of the Commissioner makes it easier with a limited number of bond amounts.

Here are the bond amounts and rules for how they are applied.

Do You Have a Physical Office In The State?

Do You Not Have a Physical Office In The State?

Just to be clear, these bond amounts are set by the Office of the Commissioner.

The bond amount itself is set as the maximum amount of financial compensation available to a customer from any financial harm done through a violation of licensing laws.

Why is a Kansas Mortgage Bond Required?

This mortgage surety bond's purpose is to hold you accountable to the laws and regulations of being licensed in Kansas, ensuring you don't purposefully and financially harm your customers.

The entire licensing process was created as a minimum set of requirements in order to legally run a mortgage business in the state. It's put in place to identify the businesses who are likely to succeed and provide the Kansas public with vital mortgage services.

And yet, every year there will be a small number of licensed mortgage professionals who will purposefully and financially harm their customers so they can save or make more money.

Examples of these fraudulent actions can include:

• Approving a borrower for a loan they can't afford
• Helping a borrower get approved for a loan by providing false information
• Hindering a borrower from getting approved by providing false information
• Pressing a borrower to enter a high commission loan to make more money
• Creating and charging fabricated fees
• Stealing money from escrow accounts

If a customer is harmed by a mortgage business they can make a claim against the company's surety bond for financial compensation. These claims are invested before they are required to be paid.

The bond amount you're required to have now is the maximum amount of financial compensation available for any one or multiple claims, as long as claims are deemed legitimate.

How Much Does a Kansas Mortgage Surety Bond Cost?

At a high level, the price of a mortgage surety bond is determined by a surety. A surety is the insurance company that underwrites mortgage company surety bonds.

The surety will determine a rate based on the following factors:

• The personal credit of the business owner or owners
• Mortgage and all financial lending experience
• Prior bond claims if any owner has been licensed in the past

This rate multiplied by your bond amount is the price you'll pay - one time - for your bond term of 12 months. More on your bond term in the next section.

Because each price is custom based on your business, you have an opportunity to save hundreds, even thousands of dollars when you purchase your bond.

How Save Save Money Buying Your Kansas Mortgage Surety Bond

We are Surety Bonds Direct, a specialized surety agency, and we'll help you purchase a surety bond. We have a network of the highest A-rated sureties.

We use this network to price shop for our customers because the rates different sureties quote can and often are vastly different from each other. This is how you can save a lot of money buying your surety bond. The money you save, you can put towards the fees required for the application itself.

Here is example pricing so you can see how the price changes drastically based on the rate.

Again, keep in mind the prices are a one time cost for the bond term or 12 months, more on that below.

The rates used in the table are from really good to average.

Let's use the $50,000 bond amount in this example.

As you can see, if your bond amount is higher, the amount of money you can save is significant.

We'll Price Shop For You At No Cost

When you request your pricing with us, we'll find you the lowest possible price at no cost to you. Plus there's no obligation to purchase either.

And if you're not ready to purchase, all quotes are guaranteed for 30 days so there is no rush or pressure if you're not ready to purchase.

Go request your price quote today. Remember, this is free information for you. There's no obligation to purchase.

If you prefer to speak with a bond specialist, you can call 1-800-608-9950.

What Do You Do After You Purchase Your Mortgage Surety Bond?

When you're ready to purchase, all you have to do is complete an online order form or purchase over the phone.

There are two important things to make sure of when you purchase:

• One, make sure the business name you use is the exact name that's on file with the Secretary of State
• Two, choose a state date when your bond becomes active

After your payment is complete, our bond issuance team will get to work preparing your bond with the:

• Correct bond form
• Requires signatures and seals
• Power of attorney

Mortgage bonds are e-filed with the National Multi-State Licensing Agency (NMLS).

We will e-file your bond for you to make the licensing process easier. You'll receive short instructions so we can get this done for you the same day.

What is the Kansas Mortgage Surety Bond Term?

As we've mentioned, the bond term is 12 months from the active date. Remember, you choose the active date during the purchase process.

As your 12 month term approaches the end, you'll have to renew your bond for the following year. During this renewal process is also when you can adjust your bond amount if that's necessary.

Renewing your bond is easy.

As a Surety Bonds Direct customer, you're assigned your own bond specialist to manage your bond for you.

As your renewal date approaches, your bond specialist will contact you to remind you of the expiration date and help you adjust your bond if needed.

Click below and get this done today.

Mortgage Bonds And Getting Your Kansas Business License/Registration

Here are the high level steps so you know what to expect.

Use the NMLS Checklist Compiler to help with the details of each step.

Criminal Background Checks

A criminal background check will be required for any owner with a 10% or greater position in the business. The Qualifying individual and all control persons in the business will also have to have a background check completed.

Credit Check

A credit report must be completed for all owners (10% or more) and the same qualifying individual and control persons. This is to show financial stability.

Business Formation Documents

You will have to provide your business formation filings including a certificate of good standing. This includes completing an application for Registration of Foreign Limited Liability if you're getting licensed with a business not registered in Kansas.

This includes making sure all trade names or "doing business as" names are registered and outlined here as well.

Business Plan

You need to outline a projected business plan for your business including:

• Your marketing strategy
• The specific products you'll offer
• The target markets you'll focus on
• The fee schedule for all business offerings
• Finally, the operating structure you plan on employing

Organizational and Management Chart

The organizational chart must show:

• Direct owners (with ownership percentages which must equal 100%)
• Indirect owners
• Subsidiaries and affiliates

The management charge must show the businesses:

• Directors
• Officers
• And managers

Go request your price quote today. Remember, this is free information for you. There's no obligation to purchase. Quotes are good for 30 days.

If you prefer to speak with a bond specialist, you can call 1-800-608-9950.