An Ohio mortgage broker bond is a type of surety bond that Ohio mortgage brokers are required to obtain in order to comply with state regulations. The bond is a form of protection for consumers and serves as a guarantee that the broker will conduct their business in compliance with the law and in an ethical manner. In the event that the broker fails to do so, the bond can be used to compensate affected parties for any damages incurred. The bond is typically required in a specific amount, which may vary depending on the broker's volume of business and other factors.
What is an Ohio Mortgage Broker Bond?
Ohio Mortgage Broker Bonds are required by Ohio's Department of Commerce to obtain your Mortgage Broker license. The Ohio Mortgage Broker Bond amount is set at $50,000. For purposes of the Principal being a mortgage broker registered under the Ohio Mortgage Broker Act (OMBA) or exempt entity listed in Revised Code 1322.01(G)(2), the Surety Bond shall be for the exclusive benefit of any buyer injured by a violation by any employee of the registrant OR loan originator employed by or associated with the registrant or exempt entity, as applicable, of any provision of the OMBA, until cancelled. For purposes of the Principal being a loan originator, the Surety Bond shall be for the exclusive benefit of any buyer injured by a violation by the loan originator of any provisions of the OMBA, until cancelled.
The State requires a Mortgage Broker bond for :
The minimum surety bond that is
required is $50,000 but it is based on the loan amount and can go up to
$150,000 in a 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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Ohio Mortgage Broker Bond Information and Requirements:
The minimum surety bond that is required is $50,000 but it is based on the loan amount and can go up to $150,000 in a surety bond.