Exempt Company Registration Bond Guide
Many states require surety bonds for exempt companies that employ mortgage loan originators. Learn how to navigate the bonding process and apply for the surety bond you need with this guide.
Bond Overview
- Purpose: To protect the public if a sponsored mortgage loan originator (MLO) breaks registration laws
- Who Needs It: Companies that are exempt from registration but employ or sponsor MLOs
- Required Amount: $25,000–$150,000, varies by state and/or value of loans serviced annually
- Regulating Body: The state department of banking or financial institutions
- Premium Rates: Typically 0.75–3% of the bond amount, credit-based
What Are Exempt Company Registration Bonds?
In some states, certain companies are exempt from mortgage licensing requirements. However, if they employ or sponsor mortgage loan originators (MLOs), an exempt company registration bond financially protects the public if an MLO breaks registration laws.
This type of surety bond guarantees that the company and its employees will follow industry rules and uphold consumer contracts.
How Much Do Exempt Company Registration Bonds Cost?
An exempt company registration bond costs a small percentage of the total bond amount, typically 0.75–3%, based on your credit score.
Bond coverage amounts vary between $25,000 to $150,000 based on the state and/or the dollar value of loans serviced in the previous calendar year.
Who Needs an Exempt Company Registration Bond?
These bonds are required for companies that are exempt from formal registration but employ MLOs that broker, fund, originate, service or process consumer mortgage loans. Select your state below to find the bond you need.
How Do Exempt Company Registration Bonds Work?
An exempt company registration bond binds three parties in a legal contract:
- Principal: The exempt company that purchases the bond
- Surety: The provider issuing the bond to the principal
- Obligee: The government agency requiring the bond
If the employees of an exempt company fail to comply with the laws and regulations, harmed parties can file a claim against the bond. The surety will cover financial damages up to the bond’s value.
How to Get an Exempt Company Registration Bond
SuretyBonds.com provides the fastest and easiest way to get an exempt company registration bond. Just follow these three steps:
- Apply online at SuretyBonds.com.
- Get a free quote within one business day.
- Purchase your bond online.
If your obligee requires the original bond form, we’ll mail it to you via your preferred shipping method. If your bond can be uploaded directly to the NMLS, we will submit your documents for you!
How Do I Renew My Exempt Company Registration Bond?
Exempt company registration bonds expire annually. A SuretyBonds.com representative will contact you with renewal instructions and an invoice to keep your bond active before your term ends.
How Do I Update My Exempt Company Registration Bond Form?
If you need to update any information on your bond form, call 1 (800) 308-4358 or email [email protected], and one of our friendly representatives will be happy to assist you.
Can I Get an Exempt Company Registration Bond With Bad Credit?
Our team is committed to helping you secure the surety bond you need despite low credit and financial issues. Once you apply, our surety underwriters will conduct a soft credit check to determine your rate and see if any additional information is required.
Learn more about our Bad Credit Surety Bonding Program.
More Resources
- NMLS Electronic Surety Bond FAQs
- IL-Exempt Company Registration New Application Checklist (Company)
- IN-Exempt Company Registration New Application Checklist (Company)
- IA-Exempt Company Registration New Application Checklist (Company)
- MA-Exempt Company Registration New Application Checklist (Company)
- ND-Exempt Company Registration New Application Checklist (Company)
- OR-Exempt Company Registration New Application Checklist (Company)
- WY-Exempt Company Registration New Application Checklist (Company)
- NV-Exempt Company Registration New Application Checklist (Company)
- NJ-Exempt Company Registration New Application Checklist (Company)
- CT-Exempt Company Registration New Application Checklist (Company)
