The Massachusetts mortgage lender license is administered by the Commonwealth’s Division of Banks.
Statutes relating to mortgage lending include obtaining a surety bond.
AmeriPro Surety Bonds offers the mortgage lender surety bond for first time and renewal applicants alike.
Our agency also offers the Massachusetts mortgage broker surety bond, so if you require that surety bond, please feel free to call us as well.
In addition to the net worth requirement of at least $200,000, mortgage lenders must furnish the Division of Banks with evidence of the appropriate surety bond.
The Massachusetts mortgage lender bond is:
The Commission also reserves the right to increase an already purchased surety bond amount at any time, at its discretion.
Applicants for the Massachusetts mortgage lender bond will pay a premium that will be determined by the following:
A detailed surety bond application.
As part of the underwriting process (this refers to the process where the determination of whether a surety bond will be issued, and if so, at what cost), because of the mortgage lender surety bond’s large size, you may be asked:
Also, of great significance, a credit score check will be provided. Our agency utilizes a “soft inquiry” which will not adversely affect your credit score at all.
As a general rule, an applicant with good credit may expect to pay between 1-3% of the bond’s amount.
Applicants with credit scores which are “fair” may pay somewhat more; however, our agency works to find you the best surety bond pricing.
We also do not charge additional fees for our services beyond the premium required.
The Massachusetts lender bond is active for one year after the date of issuance, thereafter, the bond must be renewed.
Renewal of your mortgage lender bond (and license) also entails renewal of the premium.
Massachusetts law is clear: Your mortgage lender license will be suspended upon the cancellation of yours surety bond. Fortunately, we will do our best to keep you aware of the renewal date.
The purpose of mortgage lender surety bond, while required of you as a mortgage lender and a condition of licensing, is for the benefit of the consumer and borrower.
As stated within the surety bond’s wording, the mortgage lender bond is a financial guarantee:
As principal of this surety bond you are responsible for all costs and fees paid by your surety against any surety claims. In no case, however, will the amount paid exceed the aggregate amount of the bond.
AmeriPro Surety Bonds is a surety bonds-only agency which provides mortgage broker surety bonds in Massachusetts and nationwide.
Our agency also provide license and permit, contractor, court, and fiduciary surety bonds.
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