Beginning in 2017, title pledge lenders licensees are required to file their licenses and surety bonds through the Nationwide Mortgage Licensing System (NMLS).
The surety bond, once purchased, will be filed by you through NMLS. The Tennessee Department of Financial Institutions administers the licensing requirement and is the surety bond’s obligee (a fancy word which just means that they are the ones requiring the bond).
As required by the Tennessee Code Annotated, Title 56, the Tennessee title pledge lender bond is a $25,000 surety bond required per location.
The surety bond caps at a maximum amount of $200,000.
Applicants for any amount who are well qualified will pay less than 1% of the amount required as premium. For amounts which require a credit score, our agency will only be able to qualify those who have good credit.
For larger surety bond amounts, additional information may be requested. As an applicant you may be asked the following:
Once issued, the Tennessee title pledge lender bond is active for one year from the date of issuance. Ideally, you should have your surety bond run concurrent with your licensing to prevent any lapse in surety bond coverage.
Lapses in surety bond coverage run the risk of having your license suspended until the lapse is cured.
The Tennessee title pledge lender bond is a financial guarantee for your consumers that you will conduct all business in accordance with laws, statutes and any future amendments governing your profession.
The surety bond protects from acts of malfeasance and misfeasance; however, the aggregate liability of the surety bond will not exceed the amount of the bond you purchase.
As principal of this bond, you are also agreeing to indemnify the surety for any claims paid against your surety bond.
AmeriPro Surety Bonds is a surety bonds only agency. We provide license and permit, court, and fiduciary surety bonds throughout Tennessee and nationwide.
Please call our agency today at:
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