The Department of Financial and Professional Regulation manages the residential mortgage loan industry within the State of Illinois.
To qualify for a license or registration as a mortgage professional, a surety bond is required by the Department—either a Residential Mortgage License Bond, an Exempt Entity Residential Mortgage License Bond, or an Exempt Entity Processor Registration Bond.
Jet Insurance Company provides the surety bonds listed above to act as a financial assurance to the Department that the mortgage professional will comply with state regulations. Funds from the bond may be used as a means of restitution in cases where a claimant has been financially damaged by the transgressions of a licensee.
According to the Department, both the Residential Mortgage License Bond and the Exempt Entity Residential Mortgage License Bond must have limits that are equal to the total amount of residential mortgage loans conducted within the licensee’s previous year in business.
At Jet, the cost of a surety bond is a small fraction of the bond’s limit and is dependent upon a soft credit check of the applicant. For example, if you qualify for a $25,000 Residential Mortgage Bond, rates start at $94 for a one-year term or just $9 per month.
Details on how to determine your appropriate bond limit and Jet’s preferred tier rates can be found in the chart below.
|Total Loan Amount||Bond Limit||Monthly||1-Year|
|$0 - $5,000,000||$25,000||$9||$94|
|$5,000,001 - $20,000,000||$50,000||$19||$188|
|$20,000,001 - $50,000,000||$75,000||$28||$281|
|$50,000,001 - $100,000,000||$100,000||$38||$375|
As for the Exempt Entity Processor Registration Bond, a standard $50,000 limit is mandated by the Department. Jet’s preferred tier rates are available at $188 for a one-year bond term or you can take advantage of our monthly plan of $19 a month.
The Illinois Department of Financial and Professional Regulation, Division of Banking utilizes the Nationwide Multistate Licensing System and Registry (NMLS) for the administration of residential mortgage licenses, as well as the filing of surety bonds. So once you purchase a mortgage bond with Jet, it must then be filed with the NMLS.
No need to worry though, the Jet team can take care of this process for you! Simply grant us permission to act as your designated surety company (Jet Insurance Company NAIC #16379) and we’ll take care of the rest. Further details on this process can be found on the NMLS’s Electronic Surety Bond for Licensees webpage.
For further details regarding the mortgage industry, licensure in multiple states, and applicable surety bond requirements, take a look at Jet’s Mortgage License Bonds Guide.