The Pennsylvania Mortgage Broker Bond is a type of surety bond. It is required by the Pennsylvania Department of Banking and Securities to obtain a Mortgage Broker License. According to the National Mortgage Licensing System (NMLS), “any entity… who engages in the mortgage loan business by directly or indirectly negotiating or placing mortgage loans for others in the primary market for consideration” is required to be licensed as a mortgage broker with the Commonwealth of Pennsylvania. A provision of the Pennsylvania Mortgage Licensing Act, Section 6131 requires all license applicants to file a Surety Bond with the Department of Banking and Securities. The Pennsylvania Mortgage Broker Bond ensures that the Mortgage Broker will perform all business activities in compliance with the Pennsylvania Mortgage Licensing Act. The bond is in place for the protection of the public. If any person is harmed by wrongdoing of the broker, the third party may file a claim against the bond. If the claim is valid, the bond offers financial compensation for damages caused by the mortgage broker.
The required amount for a Pennsylvania Mortgage Broker Bond depends on the anticipated or actual amount of Pennsylvania mortgage loans originated by the Principal:
|Mortgage Loan Originations1
|| Surety Bond Amount2
|$14,999,999 or Less
|$15,000,000 – $29,999,999
|$30,000,000 – $49,999,999
|$50,000,000 or more
1-Anticipated or Actual Amount of PA Mortgage Loan Originations
2-If the broker is accepting advanced fees, a $100,000 surety bond must be filed.
The Pennsylvania Mortgage Broker Bond is continuous in nature; therefore, the bond will remain in full force and effect until cancelled by the Surety. The Surety may cancel the bond at any time by providing the Department of Banking and Securities with a written notice of cancellation at least 30 days prior to the effective date of cancellation.
License Fees and Requirements:
- Pennsylvania Mortgage Broker Bond
- Financial Statements
- Criminal Background Check
- Credit Check
- Tax Certification
- Education and Testing
- Qualifying Individual
- Disclosure Questions
- $1,100 licensing fee (includes the NMLS processing fee)
All fees are required by the obligee, not the Surety Company.
How to Obtain a Pennsylvania Mortgage Broker Bond
At Surety1.com we make it easy to obtain your surety bond, with easy our 3 step process:
- Complete our secure, online application.1
- Review your free, no obligation quote.2
- Sign some paperwork and make payment (All major credit cards accepted)
After completing these steps, your surety bond will be shipped to you for signature. Once the bond is signed, it should be uploaded into the NMLS upload portal.
1 – The name on the bond application must match exactly the Full Legal Business Name of application for the mortgage broker license.
2- Occasionally, additional underwriting information is requested by the surety before surety1.com can provide a quote. Surety1 represents over a dozen surety companies to provide competitive terms and pricing for the surety bond.
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 to Visit our State-by-State Guide to Mortgage industry Surety Bonds