The state of Alabama State Banking Department oversee the licensing and regulation of Alabama mortgage brokers.
The filing of both your mortgage broker license and the surety bond are completed through NMLS, the Nationwide Multistate Licensing System.
Perhaps the quickest part of licensing process for most applicants will be obtaining the required surety bond. Our agency’s goal is to get the surety bond issued to you as soon as possible.
The Alabama mortgage broker bond is issued with a term that ends on the December 31st of whichever year in which the bond is purchased. Thereafter, you must renew your surety bond. The bond may be prorated to price which means you may pay less if your premium is paid within within a calendar year.
The information we provide to you below concerns mortgage broker surety bonds purchased for a full calendar year.
The Alabama mortgage broker bond is required in one of three amounts, which are determined based upon your loan volume production levels.
These production levels and the corresponding bond amounts are as follows:
Qualifying for the $25,000 or $50,000 surety bond amounts is simply by completing an application (which can be taken over the phone with an agent) and payment of the premium.
For both of these surety bond amounts there is neither a credit inquiry nor a review by an underwriter for the bond’s issuance.
The $25,000 surety bond will have a premium of 1% or $250; the $50,000 mortgage broker bond will also have a premium of 1%, or $500 for the year. This means that after the completion of an application and payment of the premium, our agency issues the bond to you immediately.
To that end, once the bond has been issued, a copy can be emailed to you for no additional charge. The original copy, which you will also need to sign as Principal, will follow in the mail.
$75,000 Surety Bond Amount
Applicants for the $75,000 surety bond amount will also have a premium of 1%, or $750 annually; however, to qualify as an immediate issue surety bond with no credit inquiry, we will ask you a few questions about the length of time you have been in business and related matters.
Applicants for the Alabama mortgage broker bond also have the option to prepay their surety bond for 2 or 3 years.
Besides increasing the time between renewals, prepayment of the premium also offers you a savings over year to year renewal of the bond premium. You may wish to consider, however, if you will require a different surety bond amount (based on loan production levels) before opting for prepayment.
The bond is a financial guarantee that you will be in compliance with all laws, rules, and regulations regarding mortgage broker in Alabama. This includes any amendments or additions to mortgage broker laws.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit surety bonds throughout Alabama.
Our agency also provides surety bonds nationwide. Please call us today at:
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