Mortgage Broker

Federal Law requires businesses in some industries to obtain a surety bond before a state business license is issued. Before getting their mortgage broker license a Mortgage lenders and brokers is required to get a surety bond, a process that is generally backed by the state department of banking. The purpose off the bond is to ensure the consumer is protected in the event of unlawful practices or fraud on the part of the broker or lender.

Potential clients are much more likely to hire a licensed and bonded business because they understand that bonds provide an additional layer of protection.

Mortgage lender bonds protect customers against dishonest lending practices, including: