A Georgia mortgage broker bond is a type of surety bond that is required for mortgage brokers in Georgia. The bond serves as a financial guarantee to the state and consumers that the mortgage broker will comply with state laws and regulations while conducting their business. In case of any violations or misconduct, the bond provides a means for compensation to affected parties. The bond amount required may vary depending on the broker's level of business activity and other factors.
Georgia Mortgage Broker Bonds are required by Georgia's State Banking Department to obtain your Mortgage Broker license. The Georgia Mortgage Broker Bond amount is set at $150,000. This application is to be completed and filed by each applicant, regardless of whether it is organized as a company or sole proprietorship, for a license or registration to engage in a mortgage business as a broker or processor. Pursuant to the Georgia Residential Mortgage Act, “Mortgage Broker” means any person who directly or indirectly solicits, processes, places, or negotiates mortgage loans for others, or offers to solicit, process, place, or negotiate mortgage loans for others or who closes mortgage loans which may be in the mortgage broker's own name with funds provided by others and which loans are assigned within 24 hours of the funding of the loans to the mortgage lenders providing the funding of such loans.
a minimum bond coverage to $150,000 for a licensed
or registered mortgage broker
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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Licensees, registrants, and applicants for a mortgage broker/processor license must have and maintain a surety bond in a form and terms acceptable and payable to the Department in the amount of $150,000.
Licensees, registrants, and applicants for a mortgage lender license must have and maintain a surety bond in a form and terms acceptable and payable to the Department in the amount of $250,000.
Implementation of Law Changes in House Bill 143
increased the minimum bond coverage to $150,000 for a licensed or registered mortgage broker and $250,000 for a licensed or registered mortgage lender. The increase in minimum bond coverage for brokers and lenders was enforced on December 31, 2017, which coincided with the deadline to convert company surety bonds to an electronic format through NMLS (see ESB information below).
All licensed and registered mortgage brokers and lenders must have converted their paper bonds AND provided an electronic surety bond rider through the NMLS by December 31, 2017.
Electronic Surety Bonds (ESB)
Electronic surety bonds (ESB) for mortgage company license/registration types were available in NMLS starting January 23, 2017.
New company license applications submitted after January 23, 2017 are required to meet all surety bond requirements by completing the electronic surety bond process.