This is the first of our series, "Mortgage Broker Bonds: State By State". We decided to start with Pennsylvania, as it is our home state and also one of the most difficult states to get approved for. Below we will discuss the current bond market for this particular bond, the amount required, specifics of the bond guarantee (bond form), additional state requirements, and where you can obtain this difficult to place bond.
Current Market: In general, the current surety bond market is quite conservative. The Pennsylvania mortgage broker bond is in its own league when it comes to difficulties in placing a bond. Our agency knows the surety bond industry almost inside and out, specifically mortgage broker bonds. To our knowledge, we are the only agency nationwide to offer the the Pennsylvania bond with no collateral required. Even more incredible, credit score is not an issue when it comes to approval. As long as the principal does not have a bankruptcy or tax lien in the past 7 years, unpaid collections, or a civil judgment placed against them (ever), they are approved.
Bond Amount: The state requires a $100,000 bond, which is on the high end compared to most other states. The size of the bond also makes it difficult for the typical bond producer to approve the average client. (The bond is only required for brokers that collect funds prior to a loan closing.)
Bond Form: The Pennsylvania mortgage broker bond form scares many bonding companies away from the bond. The bond form is quite different, even from a quick glance. One will quickly notice the bond form is 8 pages rather than the average 1-2. The form does have the standard cancellation and aggregate language required by most sureties, but there are other downfalls. The bond form gives the state a lot of control in the event of a claim, which scares away most bonding companies. Fortunately, we are appointed with a surety that realizes that mortgage broker bonds are somewhat of a lower risk in general, as they are not actually lending the funds.
Additional State Requirements: Mortgage brokers that are going to process first mortgages must pay a licensing fee of $500 and a $200 renewal fee. Second mortgage broker licenses also require a $500 fee and requires a separate application with different requirements. Six hours of continuing education and training are needed each year. The broker must also submit national and Pennsylvania criminal record checks (including fingerprint cards). Similar to many bonding companies the state will also want to see a of previous work experience in the field. Proof that the company telephone lines are in the broker's name is also required. The broker has to keep their main place of business in Pennsylvania.
Special Programs: We offer an exclusive "Instant Approval Online Program" for this particular bond. The application takes less than five minutes to complete and the quote is given to you immediately, online. You can access the program at: http://www.jwsuretybonds.com/mortgage_quote.htm
The Pennsylvania mortgage broker bond is arguably one of the most difficult to place commercial bonds out there. JW Surety Bonds writes more new mortgage broker bonds than any other agency nationwide. This allows us to place our applicant under a bulk program that benefits our clients greatly. Visit the Mortgage Broker Bond Section of the Surety Bond Forums if you have any questions regarding any of our services.
Mortgage broker surety bonds are one of the most highly requested surety bonds out there. As businesses and companies have become ever so competitive today, surety bonds are essential for guaranteeing payments are made on time. And in an industry that is flourishing, mortgage broker bonds allow brokers and lenders to sustain their activity in a legal manner.
Mortgage broker bonds are the most common and popular subtype of commercial surety bonds. Essentially, they guarantee the job will get done according to what was stated in the bond. And because of the fact that they are imposed by state law, they have great importance and are highly requested.
The main difference that you will find in a mortgage broker surety bond as oppose to other bonds is that it is designed specifically for brokers only. There are no people involved that are also lending the funds like in mortgage banker bonds. Because of this, you will find that mortgage broker bonds are easier to handle and far quicker to obtain than most kinds of loans.
It is vital that as a mortgage broker, you do not have to worry about whether or not you will get paid and all notes within the contract are respected. There is enough work to keep you busy through your job, and worrying about these kinds of things is just a hassle. Therefore, mortgage broker surety bonds guarantee the authenticity and legality of brokers license.
Along with this, these bonds also get into respecting the laws stated and imposed by the state. You will find that many states have their own specific laws that mortgage brokers must abide to. Because of this, each state has its own individual bonds.
What can become a hassle is when states change the document list required for obtaining bonds. Some states regularly change the list while others hardly ever change it. But it is vital for you to stay up to date with this so that you can properly close mortgage broker bonds in the state you are in.
Unlike the rest of the industry, mortgage brokers have been lucky that mortgage broker surety bonds have not changed much over the last few years. This makes it much easier if you are looking or a bond agency and even easier for those within the industry. Regardless, it is still vital that you research to find the more reliable mortgage broker out there.
Both Michael Weisbrot & Groshan Fabiola are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Michael Weisbrot has sinced written about articles on various topics from Computers and The Internet, Business and Finance and Finances. Michael Weisbrot is Vice-President of JW bond Consultants, Inc., a surety bond only agency. The only agency to offer online approvals for mortgage broker bonds.View their website at:. Michael Weisbrot's top article generates over 2400 views. to your Favourites.
Groshan Fabiola has sinced written about articles on various topics from Woman Menopause, Medical Condition and Health. A is one of the most highly requested surety bonds out there. In an industry that is flourishing. Groshan Fabiola's top article generates over 6120000 views. to your Favourites.