Mortgage brokers in Nevada must purchase a Nevada Mortgage Company License Bond to obtain a license in the state. The Nevada Division of Mortgage Lending requires licensees to file a surety bond with the Nationwide Multistate Licensing System (NMLS) in the amount of $50,000 or $75,000 based on the annual loan production of the mortgage company. The purpose of the Mortgage Company Bond is to protect the mortgage-buying public from violations of mortgage licensing laws.
Jet Insurance Company provides bonds direct to mortgage companies, meaning you save. Get a quote in minutes and save!
Jet’s price on this bond is only a small percentage of the bond amount. Our rates start as low as $188 for the $50,000 bond, or $281 for the $75,000 bond. Below is an example of our preferred tier pricing.
|Annual Loan Production||Bond Limit||Monthly||Annual|
|Less than $20 million||$50,000||$19||$188|
|More than $20 million||$75,000||$28||$281|
Pay monthly and cancel any time for as low as $19 a month. No questions asked and no fees! Rates are based on your personal credit and experience.
The Nevada Division of Mortgage Lending sets the bond amount based on the mortgage company’s annual loan production. For companies doing less than $20 million the bond limit is set at $50,000 and for any production over that amount the bond limit is $75,000.
New companies can purchase the $50,000 bond amount and will be required to increase the bond amount if their loan production exceeds $20 million.
No, mortgage bankers are excluded from the definition of “mortgage companies” for the purposes of licensing. However, mortgage bankers will need to apply for an Exempt Company Registration and file a Mortgage Banker Bond with the NMLS.
The purpose of the Nevada Mortgage Company License bond is to provide financial compensation to the public if the mortgage company fails to adhere to licensing law. Violations of license law are not usually covered by other insurance products like errors and omissions insurance, so the bond provides protection to the mortgage-buying public for these often fraudulent or dishonest practices.
The Nevada Division of Mortgage Lending is tasked with regulating mortgage businesses in the state to ensure they follow the law outlined in NRS 645B. The surety bond is a tool used by the Division to enforce adherence to the law.
Jet’s role as the insurance company is to provide the financial deep pockets to the Division if something goes wrong. However, ultimately, the mortgage company is responsible by law to reimburse the surety company for any losses.
To get started, click the View Your Price button above. Jet’s application can be completed in a few clicks. We will need your basic business information along with the owner’s information. We’ll need to check your credit, but the process is painless and will not affect your credit in any way.
Your quote will be available instantly for most situations, but our underwriters might take a quick look at the quote if we think we can find a better price. Once you receive your quote, you can purchase the bond online with a credit card.
Nevada has outsourced the license application and bond filing process to the NMLS. Once you purchase your bond with Jet, we walk you through the process and file the bond electronically on your behalf.
To get started, you must first grant us access to act as your surety company (Jet Insurance Company NAIC #16379). Once the bond is on file, any changes can easily be made by contacting us. Below is a graphic on the process.
Jet understands that business needs change, and we make the cancellation process easy and cost-free. To cancel your bond, just give us a call or email us at [email protected]. We’ll request cancellation with the NMLS right away and the cancellation will take effect in 60 days (as required by Nevada).
If you pay monthly, the payments will simply stop after the 60-day cancellation period. If you paid for the bond in full, Jet will calculate any unused premium left on the bond (with the 60-day period in mind) and return it to you.
Mortgage brokers must renew their Mortgage Company License by December 31st of each year. However, the bond does not necessarily run concurrently with the license period.
With Jet, as long as you pay your monthly payment, your bond will renew automatically and stay on file with the NMLS. If you paid for your bond upfront, Jet will send you a renewal reminder with plenty of time to renew your bond online or in the mail.
The short answer is to comply with all regulations set forth in Nevada NRS Chapter 645B. Claims are only paid when mortgage companies violate the license law and do not remedy the error. The most common actions leading to licensing problems and potential claims include:
Mortgage brokers have the ability to mitigate stress and financial risk by complying with regulators should there be an issue. Should there be fines placed against a mortgage company the best option is always to seek a resolution to make sure the payment(s) can occur. Failure to do so will significantly jeopardize the ability to continue business as a mortgage broker.
If the unfortunate happens and your company has a claim filed against it, Jet will collect all of the details and documentation surrounding the claim before conducting a thorough investigation. Jet will work with you to provide a defense against invalid claims and help you to resolve the claims before your business is affected by court proceedings.
In Nevada, claimants may bring an action in a court to make a claim against your bond. The claim must be related to activity conducted within the last 3 years. Jet may determine that a claim is valid prior to a court decision and make payment after a careful examination of the facts.
If we have to make a claim payment on your bond, we will seek reimbursement for the losses. Failure to repay surety claims will result in a suspension of your mortgage company license.
The Nevada Division of Mortgage Lending requires bonds for Mortgage Companies, Exempt Company Registration, and Mortgage Servicers. Most companies fall into the Mortgage Company category, also known as mortgage brokers.
Exempt Companies are banks or insurance companies (Mortgage Bankers) that are exempt from licensing requirements, but they must still register with the Division and post an Exempt Company Registration Bond.
Mortgage servicers directly service mortgage loans and/or are responsible for interacting with a borrower on a loan. Mortgage servicers must post a Mortgage Servicer License Bond in the amount between $100,000 to $300,000.