Alaska Mortgage Broker & Lender Bond

The Alaska Division of Banking and Securities is the authority on mortgage broker and lender licensing and compliance. Licensing requirements are defined under Alaska Statutes Chapter 60 and Alaska Administrative Code Chapter 3.14. One of the licensing requirements is a surety bond. 

This surety bond is an agreement between three parties: 

• Principal: The mortgage broker or lender that needs to get the bond.
• Obligee: The entity requiring the principal to get bonded.
• Surety: The company that issues the bond.

The surety bond is an assurance that someone who has experienced loss related to a broker’s or lender’s fraudulent or unethical actions can be compensated. Upon receiving a claim, the surety conducts an investigation to determine its validity. The surety compensates the claimant after the claim is validated. 

Once the claim is paid, the principal must reimburse the surety for the total claim amount. The financial impact of a claim is often substantial, so avoiding claims against the bond is beneficial.

The cost of an Alaska Mortgage broker or lender bond is between $750 and $7,500. This cost is based on the state’s requirement for a $75,000 surety bond. 

The cost of the bond is 1% to 10% of the total bond amount required. This is also sometimes called the bond rate or the bond premium. The chart below makes it easy to estimate your bond cost before applying. 

Often, our valued customers ask how we decide how much a bond costs? In addition to reviewing an applicant’s credit scores, we consider bond history, finances and industry experience. 

1. Apply For Your Bond

Obtaining an Alaska mortgage broker or lender bond is quick and easy through our three-step process. For the first step, apply for your bond using one of these two methods. 

1. Apply for a bond online – Our online application is available 24/7 for your convenience. This short form usually can be completed within a couple of minutes. 
2. Call us at (888) 592-6631 – Our friendly bond specialists are available to take your application by phone and answer your questions. 

When applying, you will need:

• Bond name (Alaska Mortgage Licensee or Registrant Surety Bond)
• Bond amount ($75,000)
• Email and contact information

2. Get a Quote

Once we receive your Alaska mortgage broker or lender bond application, we will email a quote to you without delay. If you would like us to personally review the quote with you or if you identify areas that need to be revised, please let us know. 

3. Purchase Your Bond

To wrap up your surety bond purchase, sign the documents online, and pay your invoice. Once these steps are completed, we will email your original bond to you.

To apply for an Alaska mortgage broker or lender license, you must include an electronic surety bond when submitting the required documents to the NMLS. The Alaska Division of Banking and Securities (DBS) regulates mortgage professionals to ensure compliance with state laws and protect consumers from fraudulent lending practices. DBS oversees licensing, examinations, and enforcement actions for financial institutions, including mortgage brokers and lenders.

Applicants must use the Alaska Mortgage Licensee or Registrant Surety Bond, which remains active until terminated by the obligee or canceled by the surety. The surety must provide a 30-day written notice to both the obligee and principal before cancellation. 

If you have any questions regarding the required bond amount, the definition and role of mortgage brokers and lenders in Alaska, etc., please contact us.

Recently, a customer reached out to our bond experts about the requirements for a mortgage broker bond in Alaska. He appreciated the time and attention we provided answering his questions and how quickly he received the bond quote after applying online. 

The licensing process for an Alaska mortgage broker or lender is done through the Nationwide Mortgage License System. The following items must be submitted to the NMLS when applying for a license:

• Application
• Surety bond
• Financial statements
• Resident/registered agent
• Primary contact employees
• Disclosure questions
• Control person attestation
• Credit report
• FBI criminal background check
• AML/BSA policy
• Business plan
• Certificate of Authority/Good Standing
• Alaska Business Affidavit form
• Formation documents
• Alaska business license
• Management chart
• Organizational chart
• Legal name documents

Nationwide Mortgage Licensing System. (n.d.). Checklist compiler.
https://mortgage.nationwidelicensingsystem.org/slr/SitePages/Checklist-Compiler.aspx

Alaska Division of Banking and Securities. (n.d.). Home [Website].
https://www.commerce.alaska.gov/web/dbs/

Alaska State Legislature. (n.d.). Alaska Statutes §06.60: Mortgage lending regulation.
https://www.akleg.gov/basis/statutes.asp#06.60

Alaska State Legislature. (n.d.). Alaska Administrative Code §3.14: Mortgage lending regulations.
https://www.akleg.gov/basis/aac.asp#3.14

Nationwide Multistate Licensing System & Registry. (n.d.). Alaska mortgage broker/lender license ESB form [PDF].
https://mortgage.nationwidelicensingsystem.org/slr/StateForms/AK_Mortgage%20Broker_Lender%20License%20ESB_Shared_v1.pdf