The New Jersey Residential Mortgage Lender Bond is required by the New Jersey Commissioner of Banking and Insurance. This is a type of surety bond and is just one of the requirements to obtain a Residential Mortgage Lender License in the state. The application process is administered by the Nationwide Mortgage Licensing System (NMLS). A New Jersey Residential Mortgage Lender Bond may be used for both Residential Mortgage Lender license applications and Mortgage Broker license applications. The bond ensures that the bond holder will faithfully comply with and abide by the provisions of N.J.S.A. 17:11C-51 and all rules and regulations of the New Jersey Licensed Lenders Act.
Who is Required to Have a Residential Mortgage Lender License?
Any business entity, including a sole proprietorship, who for compensation or gain, or in the expectation of compensation or gain, either directly or indirectly takes a residential mortgage loan application, or offers, negotiates, originates, or acquires residential mortgage loans in the primary market. Residential mortgage loans include both first and second mortgage loans on New Jersey property.
The required bond amount is $150,000.
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.
Licensing Requirements and Fees:
- Tangible net worth of at least $250,000
- New Jersey Residential Mortgage Lender Bond in the minimum amount of $150,000
- Criminal background check for owners, principals, officers, directors, partners, members and managers of LLCs, and shareholders owning 10 percent or more of business applicant
- Identification of at least one officer, director, partner, member, owner or principal who must obtain a Qualified Individual Residential Mortgage Lender License. Individual qualifications include:
- criminal background check,
- national and state testing,
- pre-licensure education,
- credit report.
- Documentation concerning corporate, partnership, limited liability company, or sole proprietorship organization;
- foreign businesses require Certificate of Authority to do Business in New Jersey
from NJ Division of Revenue
- Certification of office location suitability
Total License costs: $1,300 including the NMLS processing fee. $36.26 will be added per FBI Criminal Background Check authorization. Fees collected through the NMLS ARE NOT REFUNDABLE.
All licensing fees are required by the obligee, not the surety company.
How to obtain a for your New Jersey Residential Mortgage Lender Bond
At Surety1.com we make it easy to apply for all your mortgage industry surety bonds:
- Complete our easy to navigate and secure online application 1
- Usually within one business day, review your free, no obligation quote from one of our surety bond professional agents. 2
- Sign some paperwork and make payment (All Major Credit Cards Accepted).
Once these steps have been completed, the New Jersey Residential Mortgage Lender Bond will be shipped for an original signature. Once signed, the bond must be uploaded to the NMLS and the original mailed to the Department of Banking and Insurance.
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. Given the size of the bond, additional underwriting information may be required by the surety prior to providing a quote. Your professional surety bond agent will work with you to obtain the necessary information to provide a competitive quote from any number of the dozen surety companies represented by Surety1.com.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Surety1.com is the premier online provider of surety bonds nationwide since 2003. We also maintain an A+ rating from the Better Business Bureau.
CLICK HERE for additional licensing information from the State of New Jersey Department of Banking and Insurance.