Pennsylvania Mortgage Loan Correspondent Bond
AmeriPro Surety Bonds | 844-589-9732
Pennsylvania Mortgage Loan Correspondents
Pennsylvania mortgage loan correspondents are defined by the Commonwealth as, “A person who engages in the mortgage loan business by…originating and closing mortgage loans in his or her own name utilizing funds provided by a wholesale table funder or other funding sources…” PA Mortgage Loan Industry Licensing and Consumer Protection § 6102.
As a condition for licensing, in addition to the $1,600 application fee and a $15 credit report fee, you are required to purchase a $100,000 surety bond.
The Commonwealth’s Department of Banking is the obligee for the correspondent surety bond.
Pennsylvania Mortgage Loan Correspondent Bond: The Purpose
The purpose of the Pennsylvania mortgage loan correspondent bond is a financial guarantee for your customers. The bond does not protect you.
Specifically, this surety bond is a financial guarantee that a licensed mortgage loan correspondent will comply with all legal statutes as it relates to their professional duties.
The bond protects your customers from wrongful, and criminally negligent or acts of malfeasance committed by mortgage loan correspondent, and any employees, agents, owners, or managers against customers which is considered actionable by the Commonwealth.
Should a claim be paid on your surety bond, since it is not an insurance policy which protects your business, you are legally obligated to reimburse the surety — in full — for all costs involved in the satisfaction of the claim against your surety bond.
Qualifying for the Pennsylvania Mortgage Loan Correspondent Bond
By means of an application, you will be qualified for this surety bond.
Because of the bond’s large size, you may be requested to provide information regarding:
- Cash on hand (in checking and savings accounts);
- Whether or not you have any unsatisfied judgments or tax liens;
- Your net worth (i.e. defined as assets minus liabilities);
- Investments—their type, current market value, and where they are held;
- Of course, there will also be a standard credit check.
The Premium Amount
The premium amount will largely be determined by your credit score.
Applicants with “good” credit may expect to pay a small percentage for the mortgage loan correspondent bond; however, the amount you will pay may vary.
Even if your credit is poor, our agency will work to secure the best surety bond premium for you.
Annual Renewal of Premium
Once the bond is paid for and issued, you will want to keep in mind that the bond’s premium renews annually.
Our surety will notify you well ahead of time before the renewal period.
You will also want to keep in mind that the Commonwealth may suspend your mortgage license for any lapses in bond coverage until the lapse is cured.
About AmeriPro Surety Bonds
AmeriPro Surety Bonds is a surety bonds-only agency.
We provide all types of mortgage surety bonds throughout the Commonwealth.
Our agency also provides license and permit, contractor, court, and fiduciary bonds within Pennsylvania and nationwide.