The Department of Banking manages and regulates the licensure of mortgage professionals within the State of Connecticut. To be approved for and maintain such a license, the Department requires an appropriate surety bond—either a Mortgage Broker Bond, Mortgage Lender Bond, Mortgage Correspondent Lender Bond, or Mortgage Servicer Bond.
The various Mortgage Broker, Lender, and Servicer Bonds are provided by Jet Insurance Company as an assurance to the Department that restitution is available should the mortgage professional break a license regulation that causes financial harm to the public.
According to the Department, mandatory bond limits are based on the total loan volume of the licensee. For instance, the Mortgage Broker Bond amount ranges from a minimum of $50,000 to a maximum of $150,000. Whereas the Mortgage Lender Bond and Mortgage Correspondent Lender Bond require between a $100,000 and $500,000 limit.
At Jet, the cost of a surety bond is a small fraction of the bond limit and is based on a soft credit check of the licensee. Let’s say you qualify for the $50,000 Mortgage Broker Bond, Jet’s rates would start at $188 for a one-year term or just $19 a month.
Further bond limit examples and Jet’s preferred tier rates can be found in the price chart below.
*Only applies to the Mortgage Broker Bond
As for the Mortgage Servicer Bond, the limit must be equal to $100,000 for each office location covered by the licensee in question. So if you only have one office location, Jet’s rates would start at $375 for a one-year bond term or a convenient payment of $38 per month.
Take a look at the following chart for additional examples.
Most states utilize the Nationwide Multistate Licensing System and Registry (NMLS) for the management of mortgage licenses and attached surety bonds—the Connecticut Department of Banking, Consumer Credit Division has hopped on this trend as well. This means that once you purchase one of the applicable mortgage bonds with Jet, it must then be filed with the NMLS.
Jet can take care of this important step for you! Simply grant us permission to act as your designated surety company with the NMLS (Jet Insurance Company NAIC #16379). If you are unfamiliar with this process, the NMLS breaks it down within the Electronic Surety Bond for Licensees webpage.
In Connecticut, renewal applications for a mortgage license are due between November 1st and December 31st of each year. According to the Department, applicants must have an active surety bond on file with the NMLS to qualify for a renewed license. Check out the appropriate link at the bottom of the page for instructions on how to renew your bond with Jet.
For further details on the required surety bonds within the mortgage industry, take a look at Jet’s Mortgage License Bonds Guide.