Any entity that engages in the mortgage loan business by directly or indirectly originating and closing mortgage loans with its own funds in the primary market for consideration. A license is required for any entity who either engages in the mortgage loan business with a Pennsylvania consumer from any location or from a Pennsylvania location to any consumer. One item required to secure the license is a Pennsylvania Mortgage Lender Bond. This is a type of surety bond and is required by the Pennsylvania Department of Banking and Securities. The license is processed through the Nationwide Mortgage Licensing System (NMLS).
How to Get a Pennsylvania Mortgage Lender Bond
At surety1.com we make it as easy as possible to apply for your surety bond:
- Complete our easy to navigate and secure online application 1
- Usually within one business day, a professional surety bond agent will reach out to discuss the additional financial disclosures required by the surety.
- Review your free, no obligation quote.
- Sign some paperwork and pay for the bond (all major credit cards accepted).
Once these steps have been completed your Pennsylvania Mortgage Lender Bond will be shipped to you for signature. Once signed, the bond must be uploaded in NMLS under the Document Type “Surety Bond” in the Document Uploads section of the Company (MU1)
1. The name of the applicant on the surety bond application must match exactly the Full legal business name of applicant for the license.
The cost of the bond is usually between 1% and 3% of the bond amount. 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 Lender Pre-requisites required by the state for license
- Minimum Net Worth of $250,000.
- Financial Statements:
- Provide previous fiscal year financial statement (audited or unaudited if certified by executive officer), showing a minimum tangible net worth of $250,000.
- All financial statements must be prepared in accordance with Generally Accepted Accounting Principles.
- Financial statements should include a Balance Sheet, Income Statement and Statement of Cash Flows and all relevant notes.
- If applicant is a start-up company, only an initial Statement of Condition is required.
- Line of Credit, Repurchase Agreement or Equivalent Mortgage Funding Capability of not less than$1,000,000.
- Pennsylvania Mortgage Lender Bond
- Fidelity Bond amount: minimum of $300,000.
- Criminal background check for company owners and officers
- Credit check for company owners and officers
- Tax Certification for company owners and officers: Licensees are required to provide a certified memorandum indicating all tax obligations to the Commonwealth of Pennsylvania have been paid or that a deferred payment plan with the Pennsylvania Department of Revenue has been made.
- Education and Testing: Pre-licensing education and testing is required for at least one qualifying individual of a mortgage broker company. Pre-licensing education courses and tests will be reviewed and approved by the NMLS and only NMLS approved course providers and testers will be accepted. Approved course providers and testers are published on the NMLS website
What is the required bond amount?
The amount of the required Pennsylvania Mortgage Lender Bond is based on the anticipated or actual loan volume within the state. Required Bond amounts:
|Anticipated or Actual Amount of Loan Originations
|| Surety Bond Amount
|$29,999,999 or less
|$30,000,000 – $99,999,999
|$100,000,000 – $249,999,999
|$250,000,000 or more