The Minnesota Residential Mortgage Originator Bond is required by the State of Minnesota Department of Commerce.
A residential mortgage originator includes both brokers and lenders. Mortgage brokering includes soliciting, placing, or negotiating a residential mortgage loan. Under Minnesota Statute Section 58.08, all applicants for a Residential Mortgage Originator License must file a surety bond. The Residential Mortgage Originator Bond ensures all mortgage originators will conduct business in compliance with Minnesota Statutes, Sections 58.01-58.19 and Sections 58A.01-58A.22. The bond is for the benefit of the State of Minnesota and all persons that may suffer injury due to the Mortgage Originator’s failure to comply with all pertinent laws and regulations.
The required amount of the Minnesota Residential Mortgage Originator Bond depends on the particular company’s loan origination volume in Minnesota:
- A closed loan volume of $0 to $5,000,000 requires a $100,000 surety bond.
- A closed loan volume of $5,000,000.01 to $10,000,000 requires a $125,000 surety bond.
- A closed loan volume of $10,000,000.01 to $25,000,000 requires a $150,000 surety bond.
- A closed loan volume over $25,000,000 requires a $200,000 surety bond.
The Minnesota Residential Mortgage Originator Bond is continuous in nature; therefore, the bond remains in full force and effect until the earlier expiration of the Principal’s license or the cancellation of the bond by the Surety. The Surety must provide the Obligee with a 30 day notice prior to the cancellation date.
License Fees and Requirements:
- Surety bond
- Criminal background check on principal owners/officers
- Qualifying Individual
- Disclosure Questions from NMLS
- Certificate of Authority/Good Standing Certificate
- Formations Document
All fees are required by the obligee, not the Surety Company
CLICK HERE for more licensing information from the State of Minnesota Department of Commerce.
APPLY for your Minnesota Residential Mortgage Originator Bond today!