Pennsylvania Mortgage Bonds

Pennsylvania Mortgage Bonds

The Department of Banking and Securities manages the licensing of mortgage brokers, mortgage lenders, mortgage servicers, and mortgage companies, as well as mortgage loan originators and debt settlement servicers in the State of Pennsylvania.

To gain a mortgage license or approval to sponsor a mortgage loan originator as a licensee, the Department requires a surety bond—either a Mortgage Broker Bond, Mortgage Loan Originator Bond, Mortgage Servicer Bond, Debt Settlement Bond, or a Sponsor of Mortgage Originator Bond.

QUOTE

Jet Insurance Company provides each of the Pennsylvania Mortgage Bonds listed above to act as a means of restitution to any party that has been financially damaged by the mortgage professional due to license violations such as negligence, unethical behavior, breach of contract, and/or fraud. 

What Is Jet’s Lowest Price for a Pennsylvania Mortgage Bond?

At Jet, prices for surety bonds are a small fraction of the bond’s limit and are based on a soft credit check of the applicant. Take a look at each price chart for a better understanding of state-required bond limits and to view Jet’s preferred tier rates. It is recommended that you verify your mandated bond limit with the Department of Banking and Securities before purchasing your surety bond.

According to the Department, the Mortgage Broker License Bond is required to have a $50,000 minimum limit, however, if the broker is only accepting advanced fees, a $100,000 limit is needed. 

Bond LimitMonthly1-Year
$50,000$19$188
$100,000$38$375
PA Mortgage Broker Bond Pricing

As for the Mortgage Originator Bond, the limit is determined by the amount of mortgage loans secured by the licensee within the previous calendar year.

Bond Limit1-Year
$25,000$100
$50,000$188
$75,000$281
$100,000$375
$150,000$563
PA Mortgage Originator Bond Pricing

The Debt Settlement Bond is required to have a standard $25,000 limit.

Bond TermCost
Monthly$10
1-Year$100
PA $25,000 Debt Settlement Bond Pricing

The Mortgage Servicer Bond is mandated to have a standard limit as well, however, this one sits at $500,000.

Bond TermCost
Monthly$188
1-Year$1,875
PA $500,000 Mortgage Servicer Bond Pricing

If you are a licensed mortgage broker, the Sponsor of Mortgage Originators Bond limit is based on the anticipated or actual amount of loans conducted by the sponsored mortgage loan originator. 

Anticipated or Actual Loan AmountBond LimitMonthly1-Year
$14,999,999.99 or less$50,000$19$188
$15,000,000 - $29,999,999.99$75,000$28$281
$30,000,000 – $49,999,999.99$100,000$38$375
$50,000,000 or more$150,000$56$563
PA Sponsor of Mortgage Originators Bond Pricing*

*Pricing chart applies to licensed mortgage brokers that are sponsoring a mortgage originator.

If you are licensed as a mortgage lender, partially exempt mortgage company, or a mortgage consumer discount company, the Sponsor of a Mortgage Originators Bond limit is based on the anticipated or actual amount of loans conducted by the sponsored mortgage loan originator as well. 

Anticipated or Actual Loan AmountBond LimitMonthly1-Year
$29,999,999.99 or less$100,000$38$378
$30,000,000 - $99,999,999.99$200,000$75$750
$100,000,000 – $249,999,999.99$300,000$113$1,125
$250,000,000 or more$500,000$188$1,875
PA Sponsor of Mortgage Originators Bond Pricing*

*Pricing chart applies to mortgage lenders, partially exempt mortgage companies, and mortgage consumer discount companies that are sponsoring a mortgage originator.

Details on Pennsylvania Mortgage Bonds

The Pennsylvania Department of Banking and Securities utilizes the Nationwide Multistate Licensing System and Registry (NMLS) for the administration of mortgage licenses, as well as the filing of surety bonds. So once you purchase one of the available Mortgage Bonds 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.

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.

How to Renew My Bond

For annually-purchased bonds, see Jet’s process to renew your bond. Hint- it’s simple.

How to Cancel My Bond

See the details surrounding cancelling your bond (a 30-day cancellation clause applies).

Bond Claim Process

Mortgage professionals need to be aware of what causes a claim and what happens after a claim is made.

Pennsylvania Mortgage Broker Bond Form

Notary Bond Application:

X

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:

X

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:

X

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: