North Carolina Reverse Mortgage Lender Bond

The $100,000 Reverse Mortgage Lender Bond is required to be held by mortgage lenders that are certified to reverse mortgage loans by the North Carolina Commissioner of Banks. The bond serves the purpose of protecting elderly homeowners who enroll in a reverse mortgage transaction.

PURCHASE REVERSE MORTGAGE LENDER BOND

With Jet, applying for a Reverse Mortgage Lender Bond is easy and quick! Jet operates as a direct insurance company - we don’t charge you unfair broker or shipping fees.

What Is the Lowest Price for the Reverse Mortgage Lender Bond?

The cost of a $100,000 Reverse Mortgage Lender Bond starts as low as $50 per month or $500 per year. Rates must be approved by an underwriter who will evaluate business and personal information, including a soft credit check. The chart below illustrates rates that would be offered for an applicant with preferred credit.

Bond LimitAnnual
Monthly$50
1 Year$500
2 Years$875
3 Years$1,250
North Carolina Reverse Mortgage Lender Bond Pricing

Jet offers several payment options to best fit your needs. A monthly payment plan (exclusive to Jet) will keep your bond running as each payment is made. Bonds can also be purchased by yearly or multi-year terms for less frequent payments.

How to File the Reverse Mortgage Lender Bond With the Commissioner of Banks

An original Reverse Mortgage Lender Bond must be submitted to the Commissioner of Banks. Once payment is made, Jet will complete the bond form with a surety seal and signature and mail it to you free of charge. When you receive the bond, you will need to sign it and have another person attest to the signature. When the bond is complete, it must be mailed to the Commissioner at the following address:

Office of the Commissioner of Banks
4309 Mail Service Center
Raleigh, NC 27699-4309

Can I Cancel My Reverse Mortgage Lender Bond and Get a Refund?

Yes! Jet will refund a prepaid Reverse Mortgage Lender Bond upon cancellation. If you purchased an annual or multi-year term, Jet will notify the Commissioner right away and calculate your refund. The Commissioner keeps the bond in effect for an additional 90 days, which will be added to the time used on your bond. Jet’s calculation is based only on the time used on the bond versus the time left unused and never holds onto commissions or broker fees from your refund. 

If you are part of a monthly payment plan, there is no refund available. Each payment that is made pays for the next month’s coverage. Once cancellation is requested, the Commissioner holds the bond in effect for an additional 90 days. Up to three payments may be required to account for the liability while the bond is still in effect, and the payments will stop following the 90-day period.

How Does a Reverse Mortgage Lender Avoid Bond Claims?

The best way to avoid claims on a Reverse Mortgage Lender Bond is to follow licensing regulations and conduct business ethically. Reverse mortgages are offered by authorized mortgage lenders, who must follow the provisions of the NC Secure and Fair Enforcement (S.A.F.E.) Mortgage Licensing Act as well as the Reverse Mortgage Act (RMA). The faithful performance of a reverse mortgage lender under these rules and regulations prevents fraud, dishonesty, and misrepresentation that could harm the borrower(s) of the mortgage loan. Since a reverse mortgage loan is used by a borrower who is over 62 years of age for financial assistance, the Commissioner uses the bond to protect these vulnerable individuals from further financial hardship that could be incurred by the reverse mortgage lender. 

Under the General Statutes 53-270, a reverse mortgage lender who makes, services, or collects a reverse mortgage loan is prohibited from practices such as:

  1. Misrepresentation of material facts or false promises 
  2. Failing to distribute the funds as agreed in the reverse mortgage loan contract or other written commitment
  3. Inappropriately refusing to issue a satisfaction of a mortgage
  4. Conducting business that is unfair, deceptive, or fraudulent 
  5. Contracting for or receiving shared appreciation or shared value, except as indicated in G.S. 53-270.1
  6. Closing a reverse mortgage loan without certification that the borrower was counselled on the advisability of a reverse mortgage loan and other financial options and resources from a certified mortgage counselor
  7. Failing to fulfill the obligations of the Reverse Mortgage Act

A borrower that has suffered damages can bring civil action against the reverse mortgage lender for restitution. Claims can be filed against the bond for any of the above violations or any act or practice that is in violation of the NC S.A.F.E. Act or the Reverse Mortgage Act. If the Commissioner finds a mortgage lender who is authorized to issue reverse mortgages in violation of their licensing, the Commissioner will take action in the following order:

  1. Order the mortgage lender to cease and desist from the violation
  2. Impose a penalty of $1,000 for each violation under a cease and desist order that is not followed (note: this penalty is added to any penalty that is applicable for the violation)
  3. Revoke, temporarily or permanently, the mortgage lender’s authorization to issue  reverse mortgage loans

A claim can also be filed against the Reverse Mortgage Lender Bond by a borrower to receive restitution or by the Commissioner on behalf of the borrower. 

What Happens If I Get a Bond Claim?

If you receive a claim on your Reverse Mortgage Lender Bond, Jet will begin an investigation into the validity of the claim, collecting evidence from both the claimant and the lender. If the claim is found to be valid, Jet will pay the claimant right away and notify the Commissioner of the payout within ten (10) days. However, because you are responsible for your actions as a lender, you are still obligated to pay Jet back in the amount of the claim within thirty (30) days of the payout to restore the bond. 

Additionally, if you are found in violation of the Reverse Mortgage Act and the Commissioner directs you to make payment to a principal or you agree to make payment to a claimant under a consent order, you must make payment by the due date. Failure to pay the monies due will lead to an automatic bond claim, which Jet is obligated to pay within thirty (30) days. Just like any other claim, you are still required to pay Jet back in the amount of the claim to restore your bond to the full amount required by the Commissioner.

Why Is the Reverse Mortgage Lender Bond Required?

The Commissioner of Banks has the purpose of regulating mortgage-related business in North Carolina. One requirement enforced by the Commissioner is the Reverse Mortgage Lender Bond, which is in place to protect those who enter into reverse mortgage loans, usually homeowners aged 62 or older using the reverse mortgage loan to tap into the equity in their homes for financial assistance. Borrowers who are counseled to enter into a reverse mortgage loan are vulnerable financially. Under the Reverse Mortgage Lender Bond, borrowers are protected against financial losses from a mortgage lender’s deceitful or fraudulent actions. 

How Does the Application Process Work With Jet?

Applying for your Reverse Mortgage Lender Bond is easy with Jet! The application is fully online and will take you through each step to fill out the necessary information. Although the application only takes a few minutes to complete, it must be reviewed by a Jet team member for approval and additional business information may be needed. Once a rate has been approved, Jet will send you a quote that is ready to purchase directly online. The application will address where the bond should be sent for filing with the NC Commissioner of Banks.

PURCHASE REVERSE MORTGAGE LENDER BOND

How to Renew the Reverse Mortgage Lender Bond

When it is time to renew your Reverse Mortgage Lender Bond, Jet will send you a renewal notice through standard mail and email. To renew online, simply click the link in the email you received and provide payment to instantly renew your bond. To renew through the mail, simply fill out the renewal notice with payment information and mail it back to Jet. 

For monthly payment plans, a renewal is not required. Every payment that is made will keep your bond running for another month. Jet will automatically collect payment until cancellation is requested.

Does a Reverse Mortgage Lender in North Carolina Need Other Bonds?

The Reverse Mortgage Lender Bond must be held by a person or business who is authorized to issue reverse mortgage loans. Authorization can be added to a mortgage lender who is already licensed and holds a Mortgage Lender Bond. If conducting business as a mortgage lender and a reverse mortgage lender, both bonds must be held to protect consumers from financial damages. Unlike the Reverse Mortgage Lender Bond, the Mortgage Lender Bond must be filed through the Nationwide Multistate Licensing System.

North Carolina Reverse Mortgage Lender Bond Form

Notary Bond Application:

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: