There are two types of mortgage surety bonds. Mortgage Brokers act as a “middleman” between the financial institution and the buyer. The primary responsibility of a mortgage broker is to pre-qualify people for a loan. Mortgage Lenders are financial institutions or companies that service the loan. The mortgage broker/lender surety bond protects the buyer against greedy loan practices and lending fraud.
The bond amounts vary from state to state. The bond rate ranges anywhere from .5% to 3% of the bond amount for premium, based on approved credit. If credit is less than perfect, we can still approve you for a surety bond at a higher rate ranging anywhere from 5% to as high as 20% of the bond amount for premium.