Mortgage Broker Bonds For Pennsylvania
Mortgage Broker Bonds For Pennsylvania. Any information?
This is the first of our series, “Mortgage Broker Bonds: State By State�
We decided to start with Pennsylvania, as it is our home state and also
one of the most difficult states to get approved for. Below we will
discuss the current bond market for this particular bond, the amount
required, specifics of the bond guarantee (bond form), additional state
requirements, and where you can obtain this difficult to place bond.
Current Market: In general, the current surety bond market is quite
conservative. The Pennsylvania mortgage broker bond is in its own league
when it comes to difficulties in placing a bond. Our agency knows the
surety bond industry almost inside and out, specifically mortgage broker
bonds. To our knowledge, we are the only agency nationwide to offer the
the Pennsylvania bond with no collateral required. Even more incredible,
credit score is not an issue when it comes to approval. As long as the
principal does not have a bankruptcy or tax lien in the past 7 years,
unpaid collections, or a civil judgment placed against them (ever), they
are approved.
Bond Amount: The state requires a $100,000 bond, which is on the high end
compared to most other states. The size of the bond also makes it
difficult for the typical bond producer to approve the average client.
(The bond is only required for brokers that collect funds prior to a loan
closing.)
Bond Form: The Pennsylvania mortgage broker bond form scares many bonding
companies away from the bond. The bond form is quite different, even from
a quick glance. One will quickly notice the bond form is 8 pages rather
than the average 1-2. The form does have the standard cancellation and
aggregate language required by most sureties, but there are other
downfalls. The bond form gives the state a lot of control in the event of
a claim, which scares away most bonding companies. Fortunately, we are
appointed with a surety that realizes that mortgage broker bonds are
somewhat of a lower risk in general, as they are not actually lending the
funds.
Additional State Requirements: Mortgage brokers that are going to process
first mortgages must pay a licensing fee of $500 and a $200 renewal fee.
Second mortgage broker licenses also require a $500 fee and requires a
separate application with different requirements. Six hours of continuing
education and training are needed each year. The broker must also submit
national and Pennsylvania criminal record checks (including fingerprint
cards). Similar to many bonding companies the state will also want to see
a resume of previous work experience in the field. Proof that the company
telephone lines are in the broker’s name is also required. The broker has
to keep their main place of business in Pennsylvania.
Special Programs: We offer an exclusive “Instant Approval Online Program�
for this particular bond. The application takes less than five minutes to
complete and the quote is given to you immediately, online. You can access
the program at: http://www.jwsuretybonds.com/mortgage_quote.htm
The Pennsylvania mortgage broker bond is arguably one of the most
difficult to place commercial bonds out there. JW Surety Bonds writes more
new mortgage broker bonds than any other agency nationwide. This allows us
to place our applicant under a bulk program that benefits our clients
greatly. Visit the Mortgage Broker Bond Section of the Surety Bond Forums
if you have any questions regarding any of our services.
Michael Weisbrot is Vice-President of JW bond Consultants, Inc., a
surety bond only agency. The only agency to offer online approvals for
mortgage broker bonds.