Utah Mortgage Broker Bond

Summary

A Utah mortgage broker bond is a type of surety bond that is required by the Utah Division of Real Estate 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 Utah 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 number of loans the broker originates, with a minimum bond amount of $50,000. 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 Utah 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 Utah Mortgage Broker Bond? 

Utah Mortgage Broker Bonds are required by Utah’s Department of Financial Institutions to obtain your Mortgage Broker license. The Utah Mortgage Broker Bond amount is set at $12,500. Any individual who, in exchange for compensation as an employee of another person (partnership, limited liability company, limited partnership, corporation, association, or other group engaged in joint business activities, however organized), accepts or offers to accept applications for mortgage loans.

The State requires a Mortgage Broker bond for :  

$0 to $5,000,000 requires a $12,500 surety bond

$5,000,001 to $15,000,000 requires a $25,000 surety bond

$15,000,000 and any loan past that requires a $50,000 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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Utah Mortgage Broker Bond Information and Requirements:

$0 to $5,000,000 requires a $12,500 surety bond

$5,000,001 to $15,000,000 requires a $25,000 surety bond

$15,000,000 and any loan past that requires a $50,000 surety bond