Mortgage originators are in the profession helping a borrower complete mortgage transactions.
In the Commonwealth, mortgage originators are regulated by the Department of Banking and Securities.
As a condition for licensing, you as a mortgage originator will need to post a surety bond.
The amount of the surety bond you will be required to purchase will depend on the dollar amount of loans originated in Pennsylvania within a calendar year and reported to the Department.
The breakdown for the surety bond amounts is as follows:
What if you are a first time mortgage loan originator with no previous originator history?
What amount of bond do you purchase?
According to the Department, for first year licensees, you should estimate the amount of loans that you will originate in the calendar year and purchase a bond for that amount according to the above formula.
The purpose of your Pennsylvania mortgage originator bond is a financial guarantee which ensures that you as an originator will abide by all federal, state, and local rules as these relate to your professional duties.
The Pennsylvania Mortgage Licensing Act provides plenty of information about the regulatory aspects of your industry.
The bond’s assurance and guarantees are for the Commonwealth and your customers, not you or your mortgage loan originator company.
More specifically, the bond protects members of the public from acts of fraud, theft, and criminal misconduct committed by a PA mortgage originator, and its employees, agents, and owners.
Should a customer be able to demonstrate financial harm and have a claim paid from your surety bond, it is your legal responsibility to reimburse the surety for all costs involved in paying the claim.
The premium required for the mortgage originator bond will depend on:
Bond amounts which are larger will in general require more information than smaller bond amounts.
Such information may include financial and banking statements, net worth, cash on hand, and investments.
AmeriPro Surety Bonds will work with you to ensure that you provide all the information required.
AmeriPro Surety Bonds is a surety bonds only agency which provides license and permit, court, contractor, and fiduciary bonds throughout the Commonwealth.
You can take comfort knowing that our sole purpose is to provide you with the surety bond you require at the best premium.