The Massachusetts Mortgage Lender Bond is required by the Commonwealth of Massachusetts, Commissioner of Banks. This is a type of Surety Bond, and is required as part of the licensing process. While the bond is a requirement of the state, the application for license is managed through the Nationwide Mortgage Licensing System (NMLS). Per the State of Massachusetts, a Mortgage Banker is defined as:
Any company or person who engages in the business of making mortgage loans, or issuing commitments for mortgage loans on Massachusetts residential property. Residential property is defined as an owner-occupied, one to four family dwelling located in the Massachusetts.
Licensees may hold both a mortgage broker and mortgage lender license in Massachusetts. Pre-requisites and requirements to apply for the license can be found here.
The surety bond is required in the event of insolvency, liquidation, or bankruptcy of the bond holder, or the expiration, surrender, or revocation of the relevant license, and may be used exclusively by the Commissioner for the benefit of consumers or borrowers for the reimbursement of consumer fees or other charges determined by the Commissioner to be improperly charged or collected, and to satisfy any past due Division costs, assessments, penalties, or other obligations which have been charged to the bond holder. The Massachusetts Mortgage Lender Bond is field electronically by Surety1.com directly with the NMLS.
Surety1.com offers a simple, 3 step process to get bonded:
Once these steps have been completed, the Massachusetts Mortgage Lender Bond will be filed electronically with the NMLS by Surety1.com.
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
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.