Ohio mortgage loan registrants are licensed by the Ohio Department of Commerce – Division of Financial Institutions.
By statute, mortgage loan registrants are regulated by the Section 1322.32(A)(2)(a) of the Ohio Revised Code as to both the surety bond requirement and formula for determining the amount of surety.
Section 1322.05 also regulates your profession.
AmeriPro Surety Bonds provides the mortgage loan registrant surety bond as both a new and renewal bond.
The bond amount for the Ohio mortgage loan registrant bond is determined by a simple formula:
½ of 1% of the amount of aggregate loans completed in the previous calendar year (that is, nationwide, NOT just in Ohio);
Up to a MAXIMUM amount of $100,000;
BUT, with a MINIMUM amount of $50,000.
In other words, your mortgage loan registrant bond will be a surety bond somewhere between $50,000 to $100,000.
The purpose of your Ohio mortgage loan registrant bond is a financial guarantee that ensures that you as a licensed mortgage loan registrant will abide by all statutes and provisions governing your professional activities.
The bond is not an insurance policy; its sole benefit is for the consumer who can credibly demonstrate financial harm cause by a mortgage loan registrant.
Such financial harm may be the result of fraud, criminal misrepresentation, or malfeasance as it relates to professional misconduct.
But since it is not an insurance policy, it is always important to bear in mind that any claims paid on your surety bond become your legal liability to reimburse the surety in full.
Such liability extends not only to the dollar amount of the claim itself, but any costs and fees involved in the settlement of that claim.
The premium for your Ohio loan mortgage registrant bond may be as little as 1% of the surety bond amount required for those with good to excellent credit.
The amount, however, that you will pay for the bond’s issuance will be determined by a standard application and a credit score check.
Because information provided on an application and credit scores may have a wide range, the amount required may be significantly higher or even slightly higher than the example given here.
Because of the bond’s large amount, an application for the mortgage loan registrant bond may include questions about:
Additional information as may be requested.
It is possible that you may not be asked all of these questions.
As an agency, we would rather have you potentially more than prepared than not prepared enough.
The bond will expire on December 31st. The year in which it will expire will depend on the month that is was purchased.
A bond purchased in December of one year will expire the December of the following year, not the same month.
You will want to ensure that as a condition of maintaining your license in good standing with the Department, that a current, active surety bond is always on file.
Ideally, your bond should run concurrent with the mortgage loan registrant license.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide mortgage broker and related bonds both in Ohio and nationwide.
We thank you for your consideration and look forward to speaking with you about your mortgage loan registrant bond today.
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