Mississippi Mortgage Broker or Lender Bond

Get a Free Quote for Your Mississippi Mortgage Bond Today

Who is Required To Purchase a Mississippi Mortgage Broker Bond?

Mississippi Department of Banking and Consumer Finance issues the following individual mortgage licenses

• Mortgage originators
• Mortgage brokers
• Mortgage loan originator

Each license has a surety bond requirement, however, if you're an individual originator you only need a bond if you're in business for yourself. If you're an employee for a broker business, their surety bond requirement will cover you.

What Are the Mississippi Mortgage Surety Bond Amounts?

Mississippi is unique among other states because from year to year the Department might change your bond amount.

However, for all first time businesses getting licensed, the following is the minimum bond amounts.

The licensing guidelines don't make it clear how your bond amount can change. But in most states, the more mortgage loan volume in dollars you manage, the higher your bond amount.

When you renew your license, the Department will notify you if and why they are changing your bond amount.

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

Why is a Mississippi Mortgage Bond Required?

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

The Department of Banking and Consumer Finance created the licensing process to only qualify the businesses most capable of successfully operating a mortgage business and helping the public obtain qualified loans.

However, despite being qualified and licensed, every year a small number of mortgage professionals will purposefully and financially harm their customers to increase profits or steal money.

Examples of 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 mortgage broker or lender is found guilty of these actions or similar actions, the harmed customer can make a claim against the surety bond to obtain financial compensation for damages.

The bond amount you're required to have is the maximum amount any one or the sum or multiple claims can be. This amount will also be a primary factor determining the price you'll pay.

How Much Does a Mississippi Mortgage Surety Bond Cost?

The price of any surety bond is determined by a rate that is quoted from a surety, or the insurance company that underwrites mortgage license surety bonds.

Mortgage surety bond amounts tend to be high because of the large sums of money being transacted and loaned for property.

If you can find a lower rate, you can easily save hundreds, even thousands of dollars when you purchase your bond.

Here's how the process works.

Step 1: Obtain a Price Quote

Pricing for mortgage surety bonds is going to be custom based on you and the owners of the business.

The surety will primarily look at the following 3 factors when determining your price:

• 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

From these factors, they will determine a rate and this rate multiplied by your bond amount is the price you'll pay for your bond term.

Step 2: Purchase Your Bond For The Lowest Possible Price

We are Surety Bonds Direct, a specialized surety agency. We work with our large network of A-rated sureties to price shop and find the lowest possible price for our customers.

Each surety will assess an applicant using their own assessment and risk exposure. Because of this, rates from different sureties can easily be 1 to 2 or more percentage points different.

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

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 you're a lender with the larger bond amounts, the savings can be significant.

You can get your pricing today and know exactly what you will have to pay to meet this license requirement.

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. Quotes are good for 30 days.

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?

Purchasing a surety bond only requires completing an online order form. It's very easy.

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.

The only thing you need to worry about is making sure the business name on your bond matches exactly the business name you registered with the state.

How Long Does a Mississippi Mortgage Surety Bond Last?

As we've mentioned, the bond term is 12 months from the active date. The active date is a date you choose when you purchase your bond.

As your 12 month term approaches the end, you'll have to renew your bond for the following year. If your bond amount needs to be increased or decreased per the Department of Banking and Consumer Finance, this is when we'll help update your bond.

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 Mississippi 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 Mississippi.

Management and Organizational Chart

The management chart must show:

• Directors
• Officers
• Managers

This also includes all job titles and descriptions of each position.

If this business is owned by a larger company, an outline of the parent company must be completed as well.

Finally at least one employee needs to be licensed as a mortgage loan originator.

Identify the Resident Agent and the Qualifying Individual

The qualifying individual is called the managing principal. This person needs to meet the requirements for being the primary personal responsible for the operations of the business.

Proof of Zoning for the Business Location

If a business location is to be set up in Mississippi, you'll have to provide proof that the location has property zoning documents through the city and/or county. This proof must come as a letter from the zoning authority for that city/county.

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.