The Mississippi Mortgage Lender Surety Bond is a $150,000 surety bond required by the Mississippi Department of Banking and Consumer Finance’s (DBCF).
For persons wishing to conduct business on Mississippi residential property, all types of applications are completed through the Nationwide Mortgage Licensing System (NMLS). No person may transact business in the state, directly or indirectly, as a mortgage broker or mortgage lender unless he or she is licensed by the department or is a person specifically exempted from the licensing requirements.
What is considered a Mortgage Lender in Mississippi?
According to the NMLS, a lender in Mississippi is defined as:
Any person (individual, sole proprietorship, corporation, limited liability company, partnership, trust or any other group of individuals, however organized) who directly or indirectly or by electronic activity originates, makes, funds or purchases or offers to originate, make, or fund or purchase a residential mortgage loan or who services mortgage loans.
At least one employee of the lender must be licensed as a loan originator at a licensed location. Mississippi has a separate bond requirement for a loan originator, the Mortgage Broker Surety Bond. The bond requirement for the Mortgage Broker Surety Bond is only $25,000.
What does the Mississippi Mortgage Lender Surety Bond Cover?
The bond is for the use, benefit and indemnity of any person who suffers any damage or loss as a result of the company’s breach of contract or of any obligation arising from the contract or any violation of law, and, second, for the payment of any civil penalties, criminal fines, or costs of investigation and/or prosecution incurred by the State of Mississippi, including local law enforcement agencies. This is not insurance for the protection of the mortgage entity.
Surety1 offers an easy to use, online application. We have been providing surety bonds in Mississippi since 2003 and are licensed in all 50 states.