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Nevada Mortgage Servicer License Bond
Applicants for the Nevada Mortgage Servicer license must purchase and file a Nevada Mortgage Servicer License Bond. The Nevada Division of Mortgage Lending (MLD) requires servicers to file a bond in the Nationwide Multistate Licensing System (NMLS) in amounts ranging from $100,000 to $300,000 based on the servicer’s annual loan volume.
Jet Insurance Company offers the lowest rates available to Nevada mortgage servicers. Get your bond quoted, issued, and filed with the NMLS, so you can get back to servicing your customers.
What Is the Lowest Price for the Nevada Mortgage Servicer Bond?
Jet’s price on this bond starts as low as $38 monthly or $375 a year for the $100,000 bond amount. Below is our preferred tier pricing for servicers with good credit and experience:
| Annual Mortgage Servicing Volume | Bond Limit | Monthly | Annual |
|---|---|---|---|
| Less than $50 million | $100,000 | $38 | $375 |
| $50 to $500 million | $200,000 | $75 | $750 |
| More than $500 million | $300,000 | $113 | $1,125 |
Pay monthly and cancel any time, no questions asked. Or you can pay for the bond annually and save up front on the cost of the bond (2- and 3-year bond terms are available).
How Is the Nevada Mortgage Servicer Bond Amount Determined?
The Commissioner of the MLD determines the bond amount based on the loan servicer’s annual mortgage volume. New applicants can start with the $100,000 bond amount and may need to increase their bond at their annual license renewal.
How to Apply for the Nevada Mortgage Servicer License Bond With Jet
Simple, just click the button above to get started. Jet will review your business information and ownership details to determine your price. We’ll need to check your credit (don’t worry, the check won’t affect your credit) and an underwriter may contact you for some additional information, if necessary.
Jet’s is committed to offering the lowest price and best service to our customers. We dug deep into the Nevada mortgage servicer bond, so we know what to look for and how to cut out any extra costs, including middlemen. This means you save time and money.
When you receive your quote, you can purchase the bond online in a few clicks and we will file the bond for you with the NMLS.
What Happens After I Buy the Bond?
In Nevada, mortgage servicers must file their license application and surety bond with the NMLS. Jet is an expert at this process and will guide you through it step-by-step.
To get started, please grant Jet Insurance Company (NAIC# 16379) as your surety company. As soon as we receive authorization, we will file the bond and you will be prompted by email to electronically sign the bond with the NMLS. The below graphic shows the process:
What Happens if I Need to Cancel My Mortgage Servicer Bond?
Jet will cancel your bond any time without fees or penalties. If you’re paying monthly, your payment will stop automatically after the 60-day cancellation period (MLD rules, not ours). If you paid upfront, Jet will refund you any unused portion of your payment.
To cancel the bond, simply give us a call or send us an email [email protected] and we’ll take care of it right away.
How to “Renew” the Nevada Mortgage Servicer License Bond
Jet makes your bond “renewal” easy, and in most cases, eliminates the process altogether. Pay monthly with Jet and your bond stays active indefinitely. If something changes materially, we’ll contact you with plenty of options.
In Nevada, mortgage servicers must renew their license annually by December 31st of each year. However, as long as your monthly payment goes through, your bond stays on file with the NMLS. No action is needed from you on the surety bond.
If you paid upfront for your bond, we’ll email you reminders and mail you a bill to make sure your bond remains active. No need to set a reminder, we’ve got you covered.
How Can Nevada Mortgage Servicers Avoid Bond Claims?
Mortgage servicers are some of the most heavily regulated businesses in the country. As you’re probably aware, Nevada servicers must comply with both State license law set forth by the MLD, and the federal requirements Regulation X and Regulation Z from the Consumer Financial Protection Bureau (CFPB). The good news for Nevada servicers is that the state law pretty much lines up with the federal regulations, so we break down below some of the most common issues that can lead to claims stemming from the CFPB regulations.
Regulation X, also known as the Real Estate Settlement Procedures Act, specifically addresses mortgage servicers in Subpart C. The Act lays out the requirements for proper disclosures, loan transfers, and loss mitigation, among other things. Below are some violations of the rules that could lead to bond claims:
- Taking over a loan and charging late fees within a 60-day period after the loan transfer. The CFPB wants servicers to make sure the borrower has received sufficient notice and timeframes to make payment to the new servicer. This happens most frequently when a broker sells the loan to a new servicer/company.
- Not disbursing escrow balances within the required 20-day timeframe after a loan has been paid in full. This happens most frequently when your loan servicing company transfers the loan to another company.
- Charging borrowers premium for force-placed insurance without proper disclosures and notice. For most loans, borrowers must have a homeowner’s policy in place. If the policy lapses, the servicer can take action by purchasing a policy on the borrower’s behalf but must do so following strict guidelines.
- Failing to review and respond to a loss mitigation application from a borrower within the allotted time frames. Borrowers in default can submit a loss mitigation application and the servicer must respond timely as to whether the application is complete and provide notification in writing within 5 days after receipt.
Regulation Z, also known as Truth in Lending, covers a wide range of consumer credit products. Subpart E relates specifically to mortgage transactions and covers special rules for high-interest loans, reverse mortgages, and home equity lines of credit (HELOCs). As you might expect, the regulations for these loan transactions are heavily regulated. Some of the actions that might lead to a claim include the following:
- Incomplete or inaccurate disclosures for “high-cost”, reverse mortgages, or HELOCs.
- Failure to provide notices within required timeframes.
- Refinancing a high-cost mortgage into another high-cost mortgage within 1 year.
- Failure to receive certification that a borrower has obtained counseling from a HUD-approved counselor on high-cost mortgages.
- Failure to disclose late fees or charging late fees before 15 days after the payment is due.
- Pyramiding of late fees.
The above list is by no means exhaustive, so it’s important that you follow all the regulations required in NRS Chapter 645F to avoid a claim.
What Happens if I Get a Bond Claim?
Jet defends you in the event of a claim. As the Surety, our obligation is to investigate claims and make payment when a claim is determined as valid. During this process, Jet will reach out to you as soon as we receive notice of a claim to get your side of the story so we can mount a defense.
In Nevada, we have 30 days to make a determination whether the claim is valid and to make payment. Under this time crunch, your quick response is crucial so we can do our best to defend your reputation and license.
At times, the Commissioner of the MLD may receive a claim directly and make a determination as to the validity of the claim. In these cases, the Commissioner can demand payment from the Surety. Jet does not have any options but to pay these claims, so it’s important that you also respond to the Commissioner with any evidence that might help your case. The Commissioner will set guidelines for arbitration when applicable.
Surety bonds are a special type of insurance product that really act more like a letter of credit for acts that run afoul of regulations (aka, illegal). The surety bond does not absolve mortgage servicers from following the law. As a result, if Jet has to pay a claim on your bond, you will be responsible for reimbursing us for the loss. We will do everything in our power to avoid this circumstance and fight for you and your reputation.
Are There Other Bonds for Mortgage Companies in Nevada?
The Nevada MDL requires licenses and surety bonds for several different types of mortgage-related businesses. A full list of the licensing requirements can be found on the NMLS state licensing page. Surety bonds are needed for the Nevada Mortgage Company License and for banks or insurance companies that can apply for Exempt Company Registration to be a Mortgage Banker in Nevada.
Mortgage servicers and brokers typically operate in more than one state. If you have bond needs in other states, check out our Mortgage Bond page for details on other surety bonds you might need.
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.
