$75,000 West Virginia Mortgage Broker / Mortgage Loan Originator Bond

Businesses are required to file a $75,000.00 bond with the State of West Virginia Division of Financial Institutions (the "Obligee") to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from a licensed business breaking licensing laws.

Mortgage Broker / Mortgage Loan Originator Bond

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How much does the West Virginia Mortgage Broker / Mortgage Loan Originator bond cost?

West Virginia Mortgage Broker / Mortgage Loan Originator bonds typically cost between $563 and $3,750 depending on the personal credit, license history, and experience of the business owners and the surety carrier issuing the bond.

Credit Premium Rate Bond Cost
0.75% $562.50
1.00% $750
1.25% $937.50
1.50% $1125
1.88% $1410
4.00% $3000
5.00% $3750

Is a Credit Check Required for West Virginia Mortgage Broker / Mortgage Loan Originator Bonds?

Surety carriers will run a credit report as part of underwriting the bond because the business ultimately must reimburse the surety bond company for any claims made on the bond.

Why is the West Virginia Mortgage Broker / Mortgage Loan Originator bond required?

Businesses are required to purchase and file a $75,000 bond with the State of West Virginia Division of Financial Institutions to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from the failure of a licensed business complying with the provisions of licensing laws.

How does the West Virginia Mortgage Broker / Mortgage Loan Originator bond work?

West Virginia Mortgage Broker / Mortgage Loan Originator bonds must be issued by an insurance carrier admitted by the West Virginia Department of Insurance. The insurance company issuing any surety bond, such as the West Virginia Mortgage Broker / Mortgage Loan Originator bond, will also be referred to as the "surety company" or the "bond company". The business is referred to as the Principal, the surety bond company as the Obligor and the State of West Virginia Division of Financial Institutions as the Obligee.

The surety company provides the Obligee a guarantee (the surety bond) that the customers, vendors and employees of a licensed business will receive payment for financial damages due to a violation of licensing law up the bond amount stated on the bond form ("penal sum"). The bond company also directly receives claims from the public and determines the validity of claims. Ultimately, the licensed business owners are responsible for their actions and required by law to reimburse the surety company for any payments made under the bond or face indefinite license suspension.