The Louisiana Mortgage Lender Surety Bond is in place to to protect any persons who suffer any damage or loss as a result of the residential mortgage lender’s breach of contract or of any obligation arising therefrom, or by any violation of law. The bond ensures that the principle will abide by all Louisiana state laws and regulations along with the Louisiana Revised Statutes Title 6.
The amount of a Louisiana Mortgage Lender Surety Bond depends on the loan volume of the broker from the previous year.
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.
Valid: Continuous – Renewable
Since this bond is continuous, it remains in full force and effect until cancelled. If the bond is cancelled, the obligee must be notified of the cancellation at least 60 days before the cancellation date.
All licensing fees are required by the obligee, not the surety company.