Alabama Mortgage Broker Bond

Summary

A Mortgage Broker Bond is a type of surety bond required by the State of Alabama for mortgage brokers operating in the state. The bond guarantees that all mortgage brokers will comply with the state's laws and regulations related to the mortgage industry. The purpose of the bond is to ensure that borrowers are protected from any unethical or fraudulent activities by the broker. The bond also guarantees that the broker will comply with all of the terms and conditions of their loan contracts. The bond must be purchased from an authorized surety company and will be in the amount of $50,000. The bond must be renewed every two years and will remain in effect until cancelled by the surety.

What is an Alabama Mortgage Broker Bond? 

Alabama Mortgage Broker Bonds are required by Alabama's State Banking Department to obtain your Mortgage Broker license. The Alabama Mortgage Broker Bond amount is set at $25,000.  This License is required of any company or sole proprietor who directly or indirectly solicits, processes, places, or negotiates mortgage loans for a borrower, or offers to solicit, process, place, or negotiate mortgage loans for a borrower on Alabama residential real estate.

The State requires a Mortgage Broker bond for :  

$0 to $25,000,000 will require a minimum $25,000 surety bond

$25,000,001 to $100,000,000 will require a minimum $50,000 surety bond

Any loan volume over $100,000,000 will require a minimum $75,000 surety bond

Different parts of a bond:

 There are 3 parts to a Mortgage broker surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the Mortgage Broker Surety Bond. The Obligee is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.

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Program:

You can buy your Alabama Mortgage Broker Bond (Apply) online immediately

 Alabama Mortgage Broker Bond Information and Requirements:

$0 to $25,000,000 will require a minimum $25,000 surety bond

$25,000,001 to $100,000,000 will require a minimum $50,000 surety bond

Any loan volume over $100,000,000 will require a minimum $75,000 surety bond