Nevada Mortgage License Bonds

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Who is Required To Purchase a Nevada Mortgage Surety Bond?

All mortgage companies engaged in the following are required to purchase a mortgage surety bond:

• Mortgage lenders and brokers (originators)
• Mortgage servicers

A mortgage company engaged in lending and brokering can provide the actual loan to the customer and/or help the customer find the best mortgage product to satisfy their budget requirements and lending limit requirements.

A mortgage servicer is responsible for collecting the mortgage payments and ensuring mortgage records are accurate.

Nevada stipulates between a mortgage servicer and a supplemental mortgage servicer.

• Mortgage servicer acts as the current owner of the mortgage or the authorized agent of the current owner and services the loan
• Supplemental mortgage servicer performs the servicer duties on third party mortgage loans

All of these license classifications are required to purchase a mortgage broker bond.

Nevada Department of Business & Industry Division of Mortgage Lending like nearly every state uses the National Multi-State Licensing System (NMLS) for the application and uploading the necessary documentation.

Why is a Nevada Mortgage Bond Required?

The Nevada Department of Business & Industry Division of Mortgage Lending is responsible for the licensing guidelines for mortgage companies and servicers in the state.

The licensing process is a set of standards and regulations you're committing your company and employees to follow to stay in good standing. Not to mention, you must be licensed to legally conduct business in Nevada.

Even with the licensing process and standards in place, every year there will be a handful of mortgage professional who purposefully:

• Approve a borrower for a loan they can't afford
• Help a borrower get approved for a loan by providing false information
• Hinder a borrower from getting approved by providing false information
• Press a borrower to enter a high commission loan to make more money
• Create and charge fabricated fees

The mortgage broker and/or servicer bond protects your customers from these actions.

If a mortgage lender or broker is found guilty of these acts or similar, the customer can make a claim against the mortgage bond for financial compensation. The total compensation available only extends to the amount of the bond.

What Are The Nevada Mortgage Broker and Lender Bond Amounts?

Nevada makes the bonding amounts very straight forward. For each license classification, the bond amount will depend on the mortgage loan amount written or under management.

Mortgage Companies

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Individual Mortgage Loan Brokers or Originators

The individual mortgage brokers who are employed by a company do not have to be individually bonded.

Individual originators are covered by the company bond.

Mortgage Servicer

Remember a mortgage servicer is a company that owns the mortgage loan or an individual who is the authorized agent of the company who owns the mortgage loan being serviced.

Here are the bond amounts:

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Supplemental Mortgage Servicer

A supplemental mortgage servicer is a company that services the loans of an unrelated mortgage company. This company is a third party and this is why the bond amounts are higher.

This bond is not only protection for the customer who has the mortgage, but the mortgage company to ensure their loans are being serviced correctly.

Here are the bond amounts:

Click here and get your quote today.

Remember this bond amount is the maximum amount of financial coverage available to your customers. The bond amount will affect the price to purchase the bond.

How Much Does a Nevada Mortgage Company and Servicer Bond Cost?

The price of a mortgage broker bond and mortgage lender bond is going to be different for every applicant.

The price will be calculated from a rate quoted by a surety.

A surety is an insurance company who chooses to underwrite mortgage company surety bonds. Every surety looks at similar factors when assessing an applicant, but how they weight and use these factors differ.

The main factors are:

• Personal credit of the individual or business owner
• Mortgage and lending experience
• Prior bond claims if the individual or owner has been licensed in the past

Because every surety is different, the rate quoted will be different and this is where you can save hundreds of dollars purchasing your bond.

It's why using a specialized surety agency like Surety Bonds Direct is so valuable. We price shop for you, finding the lowest possible price, and helping you purchase your surety bond.

And once you get pricing from us, you're under no obligation to purchase.

It's free information you can use to make getting through the application process faster.

It costs you nothing to have us price shop for you so there's no reason to request your free quote right now or call a bond specialist at 1-800-608-9950.

Mortgage Broker and Lender Price Examples

Let's look at the $75,000 bond amount for mortgage brokers.

Pay attention to the rates and how one percentage point can make huge difference in the price.

Example pricing is great, but you can get your exact price with no risk or obligation to purchase within one business day.

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.

How To File Your Mortgage Broker or Lender Bond?

After you agree to a price, purchasing your bond is as easy as completing an online checkout form.

Once your payment is processed, our issuance team will immediately begin the process to issue your bond with the National Multi-State Licensing System.

We provide you with detailed instructions to help us file your bond. The process takes only a few minutes.

How Long Does a Nevada Mortgage Broker Bond Last?

Both the Nevada Department of Business & Industry Division of Mortgage Lending requires an active surety bond on file with the NMLS (National Multi-State Licensing System) to legally conduct business in Nevada.

Every mortgage company and servicer bond has a bond term or 12 months from the effective date.

The effective date is a date you choose when you purchase your bond. This is the "activation" date of your bond.

12 months from this date, your bond will have to be renewed.

How Do You Renew a Mortgage Broker and Lender Bond?

Renewing a mortgage broker and lender bond is easy. As your bond expiration date approaches, your bond specialist will contact you 30 to 45 days in advance to ensure you don't miss paying the renewal premium.

Your bond specialist will have renewal pricing already quoted allowing this process to get finished with little headache or effort.

Once you pay the renewal premium, your bond remains active. You don't have to do anything.

Mortgage Bonds And Getting Your Nevada Business License/Registration

Criminal Background Check

All licenses are required to provide fingerprints for a criminal background check, unless you've had one conducted through the NMLS within the previous 12 months.

Here's who must submit to the background check:

• Direct and indirect owners
• Executive officers
• Shareholders who own 10% or more of the company

Formation Documents And List All DBAs and Trade Names

Upload a copy of your:

• Corporate Charter or Articles of Incorporation if you're a corporation
• Articles of Organization and Operating Agreement if you're an LLC
• Partnership Agreement if you're a partnership

You're allowed to use "doing business as" names and trade names but they must be approved. This typically means being registered with the Arizona Secretary of State.

There are additional rules so make sure you read through them as you're submitting your application.

Financial Statements, Credit Reports, and Bank Account

You must upload a financial statement dated no later than the last day of your fiscal year.

If you're in your first year of business, you must submit a Statement of Financial Condition stating you meet the net-worth requirements.

The company must provide the primary bank account information for the company.

All controlling persons in the company must also submit their personal credit reports.

Qualifying Employee or Responsible Individual

The Qualifying Employee is one person who must:

• Be licensed in good standing as a mortgage loan originator
• Designated by your company to be the primary expert for the company and supervise the day to day operations
• Be present in the licensed location during open hours
• Provide proof of 24 months of verifiable experience in the business of lending money for real estate mortgages within the last 5 years

If you ever lose your Qualifying Employee, you have 30 days to replace them.

Business Plan

You must upload a business plan including:

• Marketing strategies
• Products being sold
• Target markets you will serve
• Operating structure being used

Organizational Chart

Upload an organization chart including:

• Direct and indirect owners
• Subsidiaries and affiliates

The owners listed must stipulate the percentage amount of ownership and it must total 100%.

Nevada Secretary of State Approval Letter

You must to have the approval of the Secretary of State verifying your intention to get licensed in the State.

Local Business License and Lease

You must upload a copy of your local business license obtained in the municipality your company is located in.

You must also provide the lease or deed of the building you will be occupying.

Individual Mortgage Originator

Pre-License Education

You're required to complete 30 hours of NMLS approved education. The breakdown being:

• 3 hours of ethics, fraud, consumer protection, and fair lending issues
• 3 hours of federal law and regulations
• 2 hours of training related to lending standards for nontraditional mortgage products
• 4 hours of Nevada law and regulations
• 18 hours of electives

Company Sponsorship

If you're an individual, you must be sponsored by a company. In nearly every case this will be your employer.

An approved sponsor must be obtained before an originators

Testing

Must meet one of these requirements

• Passing results on both the National and Nevada State components of the SAFE Test
• Passing results on both the National and Stand Alone UST components of the SAFE Test
• Passing results on the National Test Component with Uniform State Content Follow the instructions in the View Testing Information Quick Guide to confirm test results have been posted to your record and indicate "pass"