The Iowa Mortgage Surety Bond ensures the licensee’s full compliance with the Iowa State Code and protects the public from any wrongdoing or noncompliance by the licensee. Iowa Code Chapter 535B requires the filing of an Iowa Mortgage Surety Bond with the Superintendent of the Division of Banking of the Department of Commerce as a component of the license application.
The required amount for the Iowa Mortgage Surety Bond is $100,000. Furthermore, the Banking Finance Bureau requires a business and personal financial statement along with the bond.
The price for the bond, also known as the bond premium, is only a small fraction of the bond amount. The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
Bond Valid: Continuous – Renewable
Since this bond is continuous, it remains in full force and effect until it is cancelled. If the bond is cancelled, the obligee must be notified of the cancellation.
All licensing fees are required by the obligee, not the surety company.