Washington Mortgage Broker Bond

Summary

A Washington mortgage broker bond is a type of surety bond that is required by the Washington State Department of Financial Institutions for individuals or companies acting as mortgage brokers in the state. The purpose of the bond is to provide a financial guarantee to the state and consumers that the mortgage broker will adhere to all applicable laws and regulations. To obtain a Washington mortgage broker bond, the broker must work with a surety company who will issue the bond on their behalf. The bond amount required by the state varies based on the volume of loans the broker originates, with a minimum bond amount of $20,000. If a consumer suffers financial losses due to the mortgage broker's actions, they can file a claim against the bond. If the claim is found to be valid, the surety company will pay out the amount of the bond to the consumer, up to the bond amount. Having a Washington mortgage broker bond is a requirement for all mortgage brokers operating in the state. It serves as a protection for consumers and helps ensure that mortgage brokers are held accountable for their actions.

What is an Washington Mortgage Broker Bond? 

Washington Mortgage Broker Bonds are required by Washington’s Department of Financial Institutions to obtain your Mortgage Broker license. The Washington Mortgage Broker Bond amount is set at $20,000. This License is required for of any company (including sole proprietorship) that for compensation or gain, or in the expectation of compensation or gain: (a) assists a person in obtaining or applying to obtain a residential mortgage loan or (b) holds itself out as being able to assist a person in obtaining or applying to obtain a residential mortgage loan.

The State requires a Mortgage Broker bond for :  

$0 to $20,000,000 will require a minimum $20,000 surety bond

$20,000,001 to $40,000,000 will require a minimum $40,000 surety bond

Any loan volume over $40,000,000 will require a minimum $60,000 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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Washington Mortgage Broker Bond Information and Requirements:

$0 to $20,000,000 will require a minimum $20,000 surety bond

$20,000,001 to $40,000,000 will require a minimum $40,000 surety bond

Any loan volume over $40,000,000 will require a minimum $60,000 surety bond