North Carolina Mortgage Broker Bonds
A North Carolina Mortgage Lender Surety Bond is required by the Commissioner of Banks, as detailed in NC General Statutes § 53.244.103 (b) (1) (2). The bond amount is based on the loan volume reported to the Commissioner of Banks. The minimum NC Mortgage Lender Bond must be for $150,000, with a maximum of $500,000.
The bond forms MLA03, MLA03-A, or MLA03-B must be furnished by a surety company authorized to execute bonds in the State of North Carolina. The purpose of the NC Mortgage Lender Bond is to establish and maintain financial responsibility as a licensee.
The NC Mortgage Lender bond and license is required of any company or sole proprietor who for compensation or gain, closes a mortgage loan, advances funds, offers to advance funds, or makes a commitment to advance funds to a borrower under a mortgage loan on residential real property located in North Carolina.
North Carolina Mortgage Bonds
The North Carolina Secure and Fair Enforcement Mortgage Licensing Act “MLA” defines “Make a residential mortgage loan” means to advance funds, to offer to advance funds, to make a commitment to advance funds to a borrower under mortgage loan, or to fund a residential mortgage loan. Residential mortgage loan or mortgage loan” in NC means any loan made or represented to be made to a natural person or persons primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling located within this State or residential real estate upon which is constructed or intended to be constructed a dwelling.
Along with the Mortgage Lender bond, NC requires the licensee have at least 3 years experience in the residential mortgage lending business.
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