Idaho Mortgage Broker & Lender Bond

The Idaho Department of Finance is the authority on mortgage broker and lender licensing and compliance. Licensing requirements for mortgage brokers and lenders are established under House Bill 450: Idaho Residential Mortgage Practices Act. To apply for and maintain a license, the mortgage broker or lender must have 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.

Mortgage brokers and lenders are required to abide by the state’s regulations and ethical standards. A claim can be brought against the surety bond if the broker or lender does not follow the rules and causes financial loss to another party. If the surety finds that the claim is valid, it compensates the claimant accordingly. 

The principal must then compensate the surety for the sum of the claim. Because of the financial impact of a bond claim, avoiding claims against the bond is a top priority for mortgage brokers and lenders.

The cost of an Idaho mortgage broker or lender bond is between $250 and $2,500. This is based on the state’s requirement for a $25,000 surety bond. An additional $10,000 is required for each branch location.

The bond rate ranges from 1% to 10%. This may also be referred to as the bond premium or the bond rate. Review the chart below to estimate your bond cost before applying.

Our customers often ask about our process for determining how much a bond costs. We review an applicant’s credit scores, bond history, finances and industry experience. 

1. Apply For Your Bond

Obtaining an Idaho mortgage broker or lender bond is a quick, three-step process.  The first step is to apply using your choice of easy methods.  

1. Apply for a bond online – You have access to the bond application online 24/7. Typically, our customers only need a few minutes to complete the short application.
2. Call us at (888) 592-6631 – You will have the full support of our bond specialists when you apply for your bond by phone. 

When applying, you will need:

• Bond name (Mortgage Broker and Lender Bond) 
• Bond amount ($25,000)
• Email and contact information

2. Get a Quote

Our customers appreciate receiving an immediate bond quote via email after applying. We are available to review your quote with you by phone, if requested. Please let us know if you have revision requests.

3. Purchase Your Bond

After reviewing your bond quote, complete your purchase by signing the paperwork and paying the invoice online. Then, we will deliver your original bond to you via email.

To apply for an Idaho mortgage broker or lender license, an electronic surety bond and the other application items must be submitted to the NMLS. The Idaho Department of Finance monitors and regulates licensing of mortgage brokers and lenders. 

When submitting your surety bond to the NMLS, you must use the appropriate bond form. To remain compliant the principal is required to maintain an active surety bond during the full licensing period. 

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

When one of our new customers contacted us recently, he needed clarification about the mortgage broker bond requirements before applying for a new bond. He was grateful for the personalized attention he received from our bond experts. After getting his questions answered, he applied online and quickly got a quote.

The licensing process for Idaho mortgage brokers and lenders is completed through the Nationwide Mortgage License System. To apply for a license, you must submit the following items:

• DD 214, NGB-22 or current and valid military ID, if applicable. 
• Financial statements
• Organizational chart
• Formation documents
• Document samples
• Certificate of Existence/Good Standing
• Business plan
• Disclosure questions
• Legal name and status documentation
• FBI criminal background check
• Credit report
• Bank account
• Resident/registered agent

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

Idaho State Legislature. (2008). House Bill 450: Idaho Residential Mortgage Practices Act. https://legislature.idaho.gov/sessioninfo/2008/legislation/h0450/

Idaho Department of Finance. (n.d.). Home [Website]. https://www.finance.idaho.gov/