Connecticut Mortgage Broker, Lender, and Servicer Bonds

Connecticut Mortgage Broker, Lender, and Servicer Bonds

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. 

QUOTE

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. 

What Is the Lowest Price for a Mortgage License Bond?

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.

Bond AmountMonthly1-Year
$50,000*$19$188
$100,000$38$375
$200,000$75$750
$300,000$113$1,125
$400,000$150$1,500
$500,000$188$1,875
CT Mortgage Broker, Correspondent Lender, and Lender License Bond Pricing

*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.

Bond AmountMonthly1-Year
$100,000$38$375
$200,000$75$750
$300,000$113$1,125
CT Mortgage Servicer Bond Pricing

Connecticut Mortgage Broker, Lender, and Servicer Bonds Details

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. 

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 30-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.

Connecticut 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: