Maryland Mortgage Broker Bonds
Maryland has a MD Mortgage Lender Surety Bond requirement, regulated by the Division of Financial Regulation. The amount (penalty) of the Maryland Mortgage Lender bond depends on the volume of the licensee’s mortgage business in the preceding 12 months.
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Here are the amounts required. Call us if you have any questions….
$50,000 MD Mortgage Lender License Bond: Required where the aggregate principal amount of mortgage loans is $3,000,000 or less for the preceding twelve (12) months;
$100,000 Maryland Mortgage Lender License Bonds: Required where the aggregate principal amount of mortgage loans is more than $3,000,000 but not more than $10,000,000 for the preceding (12) months;
$150,000 Maryland Mortgage Lender Bonds: Required where the principal amount of mortgage loans is more than $10,000,000 for the preceding twelve (12) months;
$750,000 MD Mortgage Lender license Bond: Required blanket surety bond when an applicant files five (5) or more original or renewal applications at the same time and chooses to submit a blanket bond.
Maryland Mortgage Surety Bonds
The MD Mortgage Lender licensee is required to provide the state’s prescribed continuous surety bond form furnished by a surety company authorized to do business in the State of Maryland. For more information, go to https://www.dllr.state.md.us/finance/industry/mortlend.shtml. Or, feel free to call NFP Surety at (800) 863-3210 for more information about this bond or other surety bonds. You may also complete an online application to request a bond.
How do these bonds work?
License Surety bonds work like most other contracts: you promise you will do something, and, if you don’t, it will cost you. You put your own skin in the game when you purchase a bond, paying a principal to the surety for the risk they take on your behalf. The surety is the company that will be left with the bill if you don’t uphold your promises under the bond agreement, but, ultimately, you will owe the surety for the claim.
A bond is just that – something that binds. It binds together you (the obligor), the bond-requiring entity or person (the obligee), and the company through which you purchase the bond (the surety). Each party to the contract is legally bound in the interest of the purchaser upholding their promises under the agreement.
If the purchaser fails to settle a customer complaint about their work or other obligations under the bond, the customer or bond-requiring agency can file a claim on the bond, up to the bond amount. If the claim is found to be valid, the surety will pay on the bond, but the purchaser will have to repay the surety. Some small businesses can have their repayment to the surety guaranteed by the Small Business Administration (SBA) to qualify for a bond.
Why we are the best?
NFP Surety can get you your MD mortgage license bond the same day you contact our office. All we need is a little bit of information to get the ball rolling. We know you have options, so we appreciate the opportunity to earn your business.