The Bureau of Financial Institutions, Administration and Licensing Section manages the licensing of mortgage lenders, mortgage brokers, and mortgage loan originators within the State of Virginia.
To qualify for and maintain a license, a surety bond is required by the Bureau—either a Mortgage Lender Bond, Mortgage Broker Bond, or Mortgage Loan Originator Bond.
The Mortgage License Bonds stated above are provided by Jet Insurance Company to act as a financial assurance to the Bureau 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 licensee commit a violation such as negligence, misrepresentation, and/or fraud.
According to the Bureau, both the Mortgage Lender Bond and the Mortgage Broker Bond limits are based on the license type of the mortgage professional. If you are seeking a broker license, a $25,000 limit is required, whereas a $50,000 limit is needed for lender licenses.
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. For instance, if you qualify for a $50,000 Mortgage Lender Bond, rates are as low as $19 a month or $188 upfront for a one-year bond term.
As for the Mortgage Loan Originator Bond, the bond limit is dependent on the overall amount of loans originated by the licensee. So if you qualify for a $25,000 limit, Jet’s rates start off at $94 for a one-year bond term, or a convenient $9 a month.
Additional loan amounts, bond limits, and Jet’s preferred tier rates can be found in the following price chart.
|Total Loan Volume||Bond Limit||Monthly||1-Year|
|Over $100 Million||$150,000||$56||$563|
The Bureau of Financial Institutions, Administration and Licensing Section utilizes the Nationwide Multistate Licensing System and Registry (NMLS) for the administration of mortgage broker, mortgage lender, and mortgage loan originator licenses, as well as the filing of surety bonds. So once you purchase one of the available Mortgage License 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.