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Nevada Escrow Agency Bond
According to the Nevada Department of Business and Industry, businesses that manage, conduct, or supervise escrow-related transactions must be licensed as an Escrow Agency. The filing of an Escrow Agency Bond is required to obtain and maintain your license with the Division of Mortgage Lending.
Jet Insurance Company offers the Escrow Agency Bond as a guarantee to the Department of Business and Industry that the owner of the licensed escrow agency, as well as their employees, will perform all escrow-related operations according to regulations. If the escrow agency commits a license violation that results in financial damages to a client or the Division of Mortgage Lending, the surety bond will provide restitution for losses incurred.
What Is the Bond Limit and Cost of the Nevada Escrow Agency Bond?
The custom Escrow Agency Bond limit is determined by the Nevada Commissioner of the Division of Mortgage Lending and is based on the expected average monthly balance of the trust or escrow accounts maintained by the escrow agency.
Our prices at Jet for the Nevada Escrow Agency Bond are only a small percentage of the bond’s limit and are based on the personal credit score of the business owner. Higher limits may require additional information for underwriting purposes. Escrow agencies seeking a $20,000 limit can pay as low as $150 annually or a convenient $15 a month. Take a look at the chart below for additional custom bond amounts that your business may qualify for and our preferred tier rates.
| Average Monthly Balance | Bond Amount | Monthly | Cost |
|---|---|---|---|
| $50,000 or less | $20,000 | $15 | $150 |
| $50,001 - $250,000 | $50,000 | $38 | $375 |
| $250,001 - $500,000 | $100,000 | $75 | $750 |
| $500,001 - $750,000 | $150,000 | $113 | $1,125 |
| $750,001 - $1,000,000 | $200,000 | $150 | $1,500 |
| More than $1,000,000 | $250,000 | $188 | $1,875 |
Your escrow agency license with the Division must be renewed on July 1st of every year. Your surety bond is required to be active and on file with the Commissioner to qualify for an approved renewal. With this in mind, Jet’s monthly plan is a favorable option for escrow agencies that are looking to maintain their bond for a seamless license renewal process. Just set up your preferred account for monthly payments and your bond will remain active for as long as you’d like!
The Nevada Escrow Agency License Bond Process With Jet
Jet’s application for the Escrow Agency Bond can be completed directly online and only takes a few minutes. To qualify for an approved rate, your contact details, bond limit, and social security number are needed. We’ll also need your NAIC number as it must be listed on the bond form.
Once submitted, we’ll run a quick soft credit check. If further info is required, one of Jet’s underwriters will give you a call right away. Otherwise, you will be emailed approved rates at monthly and pay-in-full options that are ready for immediate purchase. Jet will send you a copy of your receipt and bond form as soon as you fulfill the payment. It’s as easy as that!
If you are a first-time license applicant with the Nevada Division of Mortgage Lending, the required forms, qualifications checklist, and license application can be found on the “Escrow Agencies and Agents'' webpage. Before obtaining your bond with Jet, you will need to apply for your license first as the Division Commissioner will instruct you on what the appropriate custom bond amount must be. Once this is taken care of, you can proceed with Jet.
Jet can file your bond for you, but if you would prefer to file the bond form yourself, this option may be selected at check out. The original signed and sealed Escrow Agency Bond must be filed with the Nevada Department of Business and Industry, specifically the Division of Mortgage Lending at the mailing address below:
Nevada Department of Business & Industry
Division of Mortgage Lending
1830 College Pkwy., Suite 100
Carson City, NV 89706
Escrow agencies that enroll in our monthly plan won’t have to worry about renewing the Escrow Agency Bond! Your bond will remain in effect as long as payments are made. As for those who choose our annual option, Jet will send you a renewal invoice via email and mail in advance of your expiration date. You won’t be charged any renewal fees, just submit payment and your bond will be good for another term with the Division of Mortgage Lending.
If you need to cancel your Escrow Agency Bond, you can send a written request to Jet at [email protected] at any time. Once received, we will notify the Nevada Division of Mortgage Lending that your bond is to be terminated. The Commissioner will release the liability of your bond within 60 days of receiving Jet’s cancellation notice.
Your bond remains active during the 60-day period, so those subscribed to our monthly plan will be charged for this time. Your account and payments with Jet will immediately cease once the bond’s liability has been officially released by the Commissioner.
How Does a Nevada Escrow Agency Avoid Surety Bond Claims?
Escrow agencies are expected by the Nevada Department of Business and Industry, as well as the Division of Mortgage Lending, to follow all regulations set forth in Chapter 645A of the Nevada Revised Statutes. Violations may lead to the Commissioner suspending or revoking the escrow agency’s license and charging up to $50,000 fines. In addition, damaged clients of the licensee may pursue civil action which may result in a bond claim.
A claim on the Escrow Agency Bond may occur if the owner of the escrow agency, or an employee, commits a license violation such as willful dishonesty, misrepresentation, concealment of material facts, or fraud. For example, failing to deliver the respective parties of an escrow transaction their funds, appropriate documents, or property within the rightful timeline and without reasonable cause is a license transgression. The Division may also file a claim on your bond if your escrow agency has refused to pay all license fees due, but this is a rare course of action. They will likely just charge you a fine that accrues interest.
Any party, such as a past client, that has been financially damaged by the escrow agency must file an official complaint with the Division of Mortgage Lending first and are required to notify the Commissioner in writing if they are choosing to take civil action against the escrow agency. Actions need to be filed within three years following the violation act in order to be considered valid. If the damaged party takes the civil action course and the Nevada State court rules in their favor, the Escrow Agency Bond will be used to cover the claimant’s financial losses and the cost of their attorney fees.
Jet only has 30 days to review and accept or decline a claim once it is officially filed so contact Jet immediately if you receive word of a claim on your bond! We will also need all available information and documentation regarding your case for our own review of the accused license violation.
Claims on the Escrow Agency Bond that are justified by Jet must be paid out up to the bond limit (payouts will never exceed the bond amount). You, the licensed owner of the escrow agency, are responsible for your actions and the actions of your employees, and therefore must reimburse Jet for the claim payout made on your behalf. An omission to comply with this obligation will likely lead to future difficulties obtaining surety bonds in the State of Nevada, specifically bonds that are needed to achieve a license in the escrow industry.
