The Office of Financial Institutions (OFI) manages the licensing of residential mortgage lenders, residential mortgage originators, and loan brokers within the State of Louisiana.
To qualify for and maintain a license, a surety bond is mandated by the OFI—either a Residential Mortgage Lender Bond, a Residential Mortgage Originator Bond, or a Loan Broker Bond (occasionally referred to as a Consumer Loan Broker Bond).
The surety bonds listed above are provided by Jet Insurance Company as a financial assurance that the licensee will follow all state regulations, and if a violation is committed, restitution is available to any damaged party via funds from the bond in question.
At Jet, the cost of a surety is a small fraction of the limit and is based on a soft credit check of the applicant.
In the following charts, you will find state-required limits for each bond, as well as Jet’s preferred tier rates. For example, the Loan Broker Bond requires a standard $25,000 limit and Jet’s rates start at just $10 per month or $100 upfront for a one-year bond term.
As for the Residential Mortgage Lender Bond and Residential Mortgage Loan Originator Bond, the mandated limit is either $25,000 or $50,000 and is determined by the total dollar amount of loans processed by the licensee in their previous year of business. Further details are available to view in the following price chart.
|Total Loan Amount||Bond Limit||Monthly||1-Year|
|$0 - $99,999,999||$25,000||$10||$100|
|$100,000,000 or greater||$50,000||$19||$188|
The Louisiana Office of Financial Institutions utilizes the Nationwide Multistate Licensing System and Registry (NMLS) for the administration of residential mortgage and loan licenses, as well as the filing of surety bonds. So once you purchase your appropriate bond with Jet, it must be filed with the NMLS.
Jet can handle filing your bond for you! We just need you to grant us permission to act as your designated surety company with the NMLS (Jet Insurance Company NAIC #16379). If you are unsure how to do this, the NMLS breaks it down within the Electronic Surety Bond for Licensees webpage.
In Louisiana, residential mortgage and loan licenses expire at the end of the calendar year (December 31st). To ensure you experience a seamless license renewal with the OFI, select the renewal button at the bottom of the page for more information.
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.