Iowa Mortgage Broker Bond and Mortgage Banker Bond

Iowa Mortgage Broker Bond and Mortgage Banker Bond

The Department of Commerce manages and regulates the licensure of mortgage brokers and bankers within the State of Iowa. Both the Mortgage Broker Bond and Mortgage Banker Bond are utilized by the Department as a licensing prerequisite for new and recurring applicants.

QUOTE

Jet Insurance Company provides the Mortgage Broker Bond and the Mortgage Banker Bond to act as a financial assurance to the Department that the mortgage professional will abide by the stipulations of their license. Should a violation be committed (e.g. negligence, misrepresentation, fraud, or a breach of contract), funds from the bond may be used as a means of restitution by the damaged claimant. 

What Is Jet’s Lowest Price for an Iowa Mortgage License Bond?

According to the Department, the limits for the Mortgage Broker/Banker Bond are based on the total amount of residential mortgage loans conducted by the licensee in the previous year (details on how to determine your bond limit can be found in the chart below). 

Jet’s rates are a small percentage of the state-mandated bond limit and are subject to a soft credit check of the applicant. For instance, if you qualify for a $100,000 Mortgage Broker Bond, rates start at $375 for a one-year term or a convenient payment of $38 per month.

Additional bond limits and Jet’s preferred tier rates are listed in the following price chart.

Total Amount of LoansBond LimitMonthly1-Year
$0 – $100,000,001$100,000$38$375
Over $100,000,001$150,000$56$563
IA Mortgage Broker and Banker Bond Pricing

Iowa Mortgage Broker/Banker Bond Details

Most states utilize the Nationwide Multistate Licensing System and Registry (NMLS) for the management of mortgage licenses and attached surety bonds—the Iowa Department of Commerce, Division of Banking has jumped 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. 

To do this, you must grant us permission to act as your designated surety company with the NMLS (Jet Insurance Company NAIC #16379) and we’ll file your bond for you. If you are unfamiliar with this process, the NMLS breaks it down within the Electronic Surety Bond for Licensees webpage.

In Iowa, mortgage broker and mortgage banker licenses expire on 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.

At some point in time, a $100,000 Mortgage Exempt Company Bond was required by the Department. It is unclear if this regulation is still in effect, but if it is, the Jet team can provide you with this surety bond. Feel free to select the “Quote” button at the top of the page or give us a call at 855-296-2663 to apply!

If you are in need of further details on the mortgage industry, licensure processes in multiple states, and applicable surety bond regulations, take a look at Jet’s comprehensive 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 may apply.

Bond Claim Process

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

Iowa Mortgage Broker/Banker 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: