Connecticut Mortgage Correspondent Lender Bond

Connecticut Mortgage Correspondent Lender Bond: Your Guide to Licensing and Protection

Are you looking to become a licensed Mortgage Correspondent Lender in Connecticut? Obtaining the required surety bond is a crucial step in ensuring your compliance and protecting consumers. This comprehensive guide details everything you need to know about the Connecticut Mortgage Correspondent Lender Bond, from its purpose and requirements to how you can easily apply.

What is a Connecticut Mortgage Correspondent Lender?

According to Connecticut General Statute 36a-485 (2012), a “mortgage correspondent lender” is defined as a person or entity engaged in the business of making residential mortgage loans in their own name. The key distinction is that these loans are not held by the lender for more than 90 days and are funded by another party through a warehouse agreement, table funding agreement, or a similar arrangement.

Why is the Connecticut Mortgage Correspondent Lender Bond Required?

The Connecticut Commissioner of Banking mandates this surety bond as a vital component of the licensing process. Its primary purpose is to safeguard borrowers and prospective borrowers in Connecticut. By securing this bond, you are guaranteeing that as a Principal, you will:

• Faithfully conduct business with and for the benefit of borrowers.
• Truly and faithfully account for all written agreements or commitments made to borrowers.
• Comply with all relevant sections of the Connecticut General Statutes, specifically Sections 36a-485 to 36a-498f, 36a-534a, and 36a-534b.

In essence, the bond provides financial protection for consumers who may suffer damages due to any wrongdoing or non-compliance on the part of the licensed Mortgage Correspondent Lender.

Connecticut Mortgage Correspondent Lender Bond Requirements

To obtain your Mortgage Correspondent Lender license in Connecticut, you must file a surety bond with the Connecticut Commissioner of Banking. Here are the key requirements:

• Bond Amount: The required bond amount ranges from $100,000 to $500,000, with the exact sum dependent on your projected loan volume in Connecticut. For first-time applicants, a minimum bond of $100,000 is typically required.
• Continuous Nature: The bond is continuous, meaning it remains in full force and effect indefinitely unless officially canceled.
• Cancellation Clause: The bond may be canceled by the Surety with written notice 30 days prior to the effective cancellation date. This provides the Department of Banking and the Principal adequate time to address the bond status.
• Electronically Filed: The surety Bond is filed electronically by Surety1.

Comprehensive Licensing Requirements

Beyond the surety bond, aspiring Mortgage Correspondent Lenders in Connecticut must meet various other licensing criteria. While fees are determined by the obligee (the Connecticut Department of Banking) and not the Surety Company, typical requirements often include:

• Surety Bond (as detailed above)
• Other Trade Names (if applicable)
• Resident / Registered Agent
• Qualifying Individual (typically an individual with specific experience and an MLO license)
• Disclosure Questions
• Financial Statements (often demonstrating a minimum net worth, typically $50,000)
• Certificate of Authority
• Formation Document

For the most up-to-date and complete list of licensing requirements, always refer to the official resources provided by the National Mortgage Licensing System (NMLS) and the Connecticut Department of Banking.

How to Get a Connecticut Mortgage Correspondent Lender Bond

At Surety1.com, we strive to make the surety bond application process as efficient and straightforward as possible.

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. ²
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Connecticut Mortgage Correspondent Lender Bond will be uploaded to the NMLS by Surety1.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required}

Your Trusted Partner in Surety Bonds

Surety1.com, a service of AssuredPartners, one of the largest and fastest-growing insurance agencies nationwide, has been a premier online provider of surety bonds since 2003. We are committed to providing seamless service and competitive rates for all your mortgage industry bond needs.

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Click here to visit our state-by-state guide to mortgage industry bonds 

CLICK HERE for more licensing information from the National Mortgage Licensing System.

APPLY TODAY for your Connecticut Mortgage Correspondent Lender Bond!