Starting on August 1st, 2023, the Department of Financial Institutions will require residential mortgage lenders within the State of North Dakota to acquire and maintain a license, as well as a $50,000 Residential Mortgage Lender Bond.
If you already have a valid money broker license with the Department as of August 1, 2023, you are not required to obtain a residential mortgage lender license and the applicable surety bond until December 31st, 2023.
The Residential Mortgage Lender Bond is provided by Jet Insurance Company to act as a financial assurance to the Department that the licensee will uphold state regulations. In addition, the bond provides a legal guarantee that restitution is available to any damaged party should the residential mortgage lender commit a violation such as negligence, misrepresentation, and/or fraud.
At Jet, the cost of a surety bond is a small percentage of the state-mandated bond limit and is based on a soft credit check of the applicant.
In this case, the Residential Mortgage Lender Bond has a standard $50,000 limit. Jet’s rates are as low as $19 a month or $188 upfront for a one-year bond term. You can find additional bond terms and Jet’s starting rates in the price chart below.
The North Dakota Department of Financial Institutions utilizes the Nationwide Multistate Licensing System and Registry (NMLS) for the administration of residential mortgage lender licenses, as well as the filing of surety bonds. So once you purchase the Residential Mortgage Lender Bond with Jet, it must then 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.
In North Dakota, the renewal period for residential mortgage lender licenses is between November 1st and December 31st of each year. To ensure you experience a seamless license renewal application process with the Department, select the renewal button at the bottom of the page for more information.
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.