Louisiana Mortgage Broker Bonds
Louisiana State, Office of Financial Institutions has a LA Mortgage Lender Surety Bond requirement for those licensed as Residential Mortgage Lenders/Brokers, or Mortgage Loan Originators. The LA Mortgage Lender Bond is required to be in the amount of $25,000, or $50,000, depending on the originator’s, broker’s or lender’s loan volume of the previous year.
|Dollar Amount of Total Loan
Volume in Previous Calendar Years
Lenders, Brokers, and Originators
|Required Amount of Bond|
|$0 – $99,999,999||$25,000|
|$100,000,000 or greater||$50,000|
A Louisiana Mortgage Lender or Residential Mortgage Lender is any person who, directly or indirectly, originates or makes, or offers to originate or make a residential mortgage loan for another person. It also includes a Mortgage Lender that only engages in funding loans originated by licensed Mortgage Brokers and Originators. The Wholesale Lender has no originators and does not engage in retail originations.
A LA Mortgage Broker or Residential Mortgage Broker is any person who for compensation or the expectation of compensation, negotiates, places, or finds, or offers to negotiate, place, or find a residential mortgage loan for another person. Mortgage Broker also includes an approved Federal Housing Administration Loan Correspondent or a Residential Mortgage Lender who closes a residential mortgage loan in his own name but for whom the funding for the loan is provided by a third party lender in a process known as table funding.
Louisiana Mortgage Bonds
A LA Mortgage Loan Originator is an individual who for compensation or gain or with the expectation of compensation or gain takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan.
Mortgage Loan Processors and Underwriters in the state who are compensated as independent contractors are also required to have a license and provide the required Louisiana Mortgage Lender Bond.
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