Pennsylvania Mortgage Broker Surety Bond

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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		$50,000
$15,000,000 – $29,999,999		$75,0000
$30,000,000 – $49,999,999		$100,000
$50,000,000 or more		$150,000

^{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.

How to Get a Pennsylvania Mortgage Broker Bond

At Surety1.com we make it easy to obtain your surety bond, with easy our 3 step process:

1.  Complete our secure, online application.¹
2. Review your free, no obligation quote.²
3. 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.} 

The cost of the bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150 to$250. Surety1 will shop its many markets to procure the right price at the right terms.

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.

Pennsylvania Mortgage Broker License Fees and Requirements:

Here is a summary of the Pennsylvania Mortgage Broker License Fees and Requirements:

Fees

• NMLS processing fee: $100
• Credit report fee: $15
• Background check fee: $36.25 (per branch manager)
• License fee: $1,000

Requirements

• Be at least 18 years old
• Be a U.S. citizen or legal permanent resident
• Have a clean criminal record
• Have a high school diploma or equivalent
• Have at least two years of experience in the mortgage industry
• Pass the SAFE Mortgage Licensing Examination
• Obtain a Pennsylvania Mortgage Broker Bond of $50,000

Additional Requirements for Branch Managers

In addition to the above requirements, branch managers must also:

• Have at least five years of experience in the mortgage industry
• Pass the National Mortgage Licensing System (NMLS) SAFE Mortgage Licensing Examination
• Obtain a separate surety bond of $10,000

Application Process

The application process for a Pennsylvania Mortgage Broker License is as follows:

1. Submit an online application through the NMLS.
2. Pay the required fees.
3. Provide documentation to support your application.
4. Pass the SAFE Mortgage Licensing Examination.
5. Obtain a Pennsylvania Mortgage Broker Bond.
6. Submit your fingerprints to the Pennsylvania State Police.

Ongoing Requirements

Mortgage brokers in Pennsylvania must also meet the following ongoing requirements:

• Complete 16 hours of continuing education every two years
• Maintain a surety bond of at least $10,000
• Comply with all applicable laws and regulations

Failure to Comply with Requirements

Failure to comply with the requirements for a Pennsylvania Mortgage Broker License can result in a fine of up to $10,000 per day, revocation of your license, and criminal prosecution.

Additional Resources

For more information about Pennsylvania Mortgage Broker License Fees and Requirements, you can visit the following websites:

• Pennsylvania Department of Banking and Securities
• National Mortgage Licensing System (NMLS)

Click to Visit our State-by-State Guide to Mortgage industry Surety Bonds  

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