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.
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.
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 Loans||Bond Limit||Monthly||1-Year|
|$0 – $100,000,001||$100,000||$38||$375|
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.