Alabama Mortgage Broker Bond and Consumer Credit Bond

Alabama Mortgage Broker Bond

Mortgage brokers and consumer creditors conducting business in Alabama are required by the Alabama Banking Department to post a surety bond as a prerequisite to licensure. 

Both the Mortgage Broker Bond and the Consumer Credit Bond are provided by Jet Insurance Company as a financial guarantee to protect the public from licensees who break the law or commit fraud and cause financial injury.

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At Jet, we make the bond application simple by cutting out the middlemen who slow you down and cost you more for your bond with commissions and fees. We operate as the direct carrier for your bond, which means our team is with you through your application, renewals, and even claims if they arise.

How Is the Price Determined for the Alabama Mortgage Broker Bond and Consumer Credit Bond? 

Jet’s prices for both the Mortgage Broker Bond and the Consumer Credit Bond will be based on the bond limit, which is determined by the Alabama Banking Department and is based on the applicant’s loan volume in the previous calendar year. 

Jet’s price for the surety bond will always be a small percentage of the bond amount. See the table below for preferred credit pricing based on various bond amounts (rates may vary as we do factor in the personal credit of the applicant).

Dollar Amount of LoansBond TermMonthlyAnnual
$25 million or less$25,000$10$100
$25 million to $100 million$50,000$19$188
More than $100 million$75,000$28$281
Alabama Mortgage Broker Bond and Consumer Credit Bond Pricing

Jet’s unique monthly payment option allows you to keep your bond active the easiest way possible, with a low, automatic monthly payment. No more renewal paperwork and annual deadlines; just a no-hassle bond at a competitive rate. Jet also offers the bond in an annual payment option, which you can renew each year along with your mortgage broker or consumer credit license.

What Is the Purpose of the Alabama Mortgage Broker Bond and the Consumer Credit License Bond?

Mortgage brokers and consumer credit licensees hold an extremely important fiduciary responsibility for the economy, connecting the public to a key piece of the American Dream: home ownership. The Alabama Mortgage Broker Licensing Act and the Consumer Credit Act require mortgage brokers and consumer creditors to obtain a license and surety bond to ensure that licensees act in good faith, and to hold them accountable for that responsibility. Both the Mortgage Broker Bond and the Consumer Credit Bond stand as a financial guarantee that if a licensee commits fraud and causes financial damages to a client, the client will be reimbursed.


The Alabama Banking Department regulates banking and lending institutions in Alabama and is also charged with managing licensing for various professions protecting the public from unlawful practices that could cause financial harm.

How to Apply for the Mortgage Broker Bond or the Consumer Credit Bond With Jet 

Applying with Jet is easy! Your surety bond application and purchase can be done online in minutes. You will need to submit some basic information: name of your business, required bond amount as determined by the Alabama Banking Department, and social security number. We will run a soft credit check to help determine the best available rate for your bond (don’t worry; this will not affect your credit score).

Once your purchase is complete, we will immediately send you a receipt and digital copy of the bond for your records.

How Is My Surety Bond Filed?

The Alabama Banking Department utilizes the Nationwide Multistate Licensing System and Registry (NMLS) for the administration of licenses and the filing of surety bonds.

Once you have purchased your Mortgage Broker Bond or Consumer Credit License Bond with Jet, it must be uploaded to the NMLS. To do this, you must grant us permission to act as your surety company (Jet Insurance Company NAIC #16379) so that we may file your bond for you; further instructions can be found on the Electronic Surety Bond for Licensees page. Once the bond is on file, you can contact us at any time to make any necessary changes.

For further licensing information and application details, you can find these resources on the NMLS State Licensing Requirements webpage.

How to Renew My Bond

For annually-purchased bonds, see Jet’s process to renew your bond. Hint- it’s simple.

How to Cancel My Bond

See the details surrounding cancelling your bond (a 60-day cancellation clause applies).

Bond Claim Process

Mortgage professionals need to be aware of what causes a claim and what happens after a claim is made.

Alabama Mortgage Broker Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: