The Commissioner of Banking and Insurance, Division of Banking manages the licensure of residential mortgage lenders and brokers, as well as correspondent residential mortgage lenders within the State of New Jersey.
To qualify for and maintain a license, the Division requires a surety bond—either a Correspondent Residential Mortgage Lender Bond, Residential Mortgage Lender Bond, or a Residential Mortgage Broker Bond. The bond you qualify for depends on your license type and business status as an individual, partnership, or corporation.
Jet Insurance Company provides the surety bonds listed above to act as a financial assurance to the Division that the residential mortgage professional will abide by the regulations of their license. If the licensee commits a violation that causes financial damages to a borrower or the Division itself, funds from the bond may be used as a means of restitution for the claimant.
According to the Division, the Correspondent Residential Mortgage Lender Bond, Residential Mortgage Lender Bond, and Residential Mortgage Broker Bond all require a $150,000 limit.
It is important to note that the Division can choose to increase the mandated bond limit based on factors such as the number of loans conducted by the licensee, as well as the mortgage company’s financial condition.
At Jet, the cost of one of the Residential Mortgage Bonds is a small fraction of the $150,000 limit and is based on a soft credit check of the licensee. For example, rates are as low as $563 for a one-year term or just $56 a month.
The New Jersey Commissioner of Banking and Insurance, Division of Banking utilizes the Nationwide Multistate Licensing System and Registry (NMLS) for the administration of residential mortgage licenses, as well as the filing of surety bonds. So once you purchase one of the available Residential Mortgage Bonds 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.
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.