Get the free Licensed Lender Surety Bond

This document serves as a surety bond required for licensed lenders in Delaware, to protect consumers and the Office of the State Bank Commissioner against wrongful acts by the lender.

How to fill out licensed lender surety bond

How to fill out Licensed Lender Surety Bond

1. Obtain the Licensed Lender Surety Bond form from your state’s regulatory agency or a licensed surety provider.
2. Fill in your business details, including your name, address, and the license number, if applicable.
3. Specify the bond amount required by your state, which can vary depending on the type of lending.
4. Review the bond terms and conditions provided by the surety company.
5. Sign the bond agreement, ensuring that you understand your obligations as a principal.
6. Submit the completed bond form along with any required documentation to the relevant regulatory authority.
7. Pay the premium to the surety company, which is usually a percentage of the bond amount.
8. Receive a copy of the bond once it has been approved and filed.

Who needs Licensed Lender Surety Bond?

1. Licensed lenders operating in the state where the bond is required.
2. Businesses that provide loans, credit, or any form of financing to consumers or other businesses.
3. Individuals or entities applying for a lending license who need to comply with state regulations.

People Also Ask about

What is a surety bond in a mortgage?

A surety bond is a promise to be liable for the debt, default, or failure of another. It is a three-party contract by which one party (the surety) guarantees the performance or obligations of a second party (the principal) to a third party (the obligee).

What is the maximum surety bond required for a mortgage lender?

The bond amount needed for a mortgage broker bond ranges from $50,000 to $200,000. The exact amount an individual needs is based on their loan activities in the prior calendar year. If they employ others, it is the sum of all their activities. This amount is referred to as aggregate loans.

What is the bond limit for surety?

A surety will scrutinize your financial statements to set your bonding limit, which generally ranges from 10 to 20 times your adjusted working capital. Capacity. As mentioned, this is the maximum amount of bonding you can qualify for, based on your total ability to fulfill the contract in question.

What is the bond for licensed lenders in Delaware?

Licensed mortgage lenders must have a surety bond in the amount of $50,000 to $200,000. The cost of the bond is between 1% and 10% of the required bond amount. This is also sometimes referred to as the bond premium or bond rate. Estimate your bond cost using this chart before applying.

What is a lender bond?

The bond ensures that the public will receive compensation for financial harm if the lender/broker fails to comply with the licensing regulations. In short, the bond is a type of insurance that protects the public if the finance lender/broker breaks licensing laws.

What is the minimum required surety bond for a mortgage servicer?

Surety Bond Requirements by State Loan Volume in MillionsBond Amount $0-$20 $30,000 $20-$40 $50,000 $40-50 $100,000 $50+ $150,000 Jan 23, 2017

For pdfFiller’s FAQs

What is Licensed Lender Surety Bond?

A Licensed Lender Surety Bond is a legally binding agreement between a lender, the state regulatory authority, and a surety company that guarantees the lender will adhere to state laws and regulations regarding lending.

Who is required to file Licensed Lender Surety Bond?

Licensed lenders who operate within states that mandate this bond as a condition for obtaining a lending license are required to file a Licensed Lender Surety Bond.

How to fill out Licensed Lender Surety Bond?

To fill out a Licensed Lender Surety Bond, the lender must provide necessary business information, including their name, address, license details, and the amount of the bond, along with signatures from the lender and the surety company.

What is the purpose of Licensed Lender Surety Bond?

The purpose of a Licensed Lender Surety Bond is to protect consumers from potential malpractice by lenders, ensuring that the lender complies with all legal and ethical lending practices.

What information must be reported on Licensed Lender Surety Bond?

The information that must be reported on a Licensed Lender Surety Bond typically includes the lender's business name, address, bond amount, terms of agreement, and identifying details of the surety company.