To qualify for a mortgage lender or loan broker license within the State of Rhode Island, either a $50,000 Mortgage Lender Bond or a $20,000 Loan Broker Bond is required by the Department of Business Regulation.
Both the Mortgage Lender Bond and the Loan Broker Bond provide financial protection to the public. This means that if the licensee violates state mortgage regulations (e.g. commits negligence, misrepresentation, a breach of contract, and/or fraud), funds from the appropriate surety bond may act as a means of restitution for the damaged claimant.
Jet has partnered with Lexington National Insurance Corporation to compare bond rates and find the price that works best for you. The cost of each Rhode Island Mortgage Loan License Bond is a small percentage of the state-required bond limit and is based on a soft credit check of the applicant.
View the chart below for details on the preferred tier rates and various bond terms available.
|$20,000 Loan Broker Bond||$10||$100|
|$50,000 Mortgage Lender Bond||$19||$188|
*Pricing reflected is not a guarantee, as the final quote for the bond is based on personal credit as stated above. Please note that not all available price tiers are shown.
It is important to note that your bond limit is required to increase by $10,000 if you maintain four to seven branch locations or by $25,000 if you maintain eight or more branch locations.
The Rhode Island Department of Business Regulations utilizes the Nationwide Multistate Licensing System and Registry (NMLS) for the administration of mortgage lender and loan broker licenses, as well as the filing of surety bonds. So once you purchase one of the Mortgage Loan License Bonds, it must then be filed with the NMLS.
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.