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The Iowa Division of Banking is the authority on licensing for mortgage brokers and mortgage bankers. The licensing requirements are outlined in Iowa Coda 535B.4. When applying for one of these professional licenses, you must submit a surety bond.
This surety bond is an agreement between three parties:
- Principal: The mortgage broker or mortgage banker that needs to get the bond.
- Obligee: The entity requiring the principal to get bonded.
- Surety: The company that issues the bond.
The purpose of a mortgage broker or mortgage banker surety bond is to ensure that someone impacted by a company’s unethical actions can be compensated fairly. Once a claim is filed, the surety determines if it is valid. It pays the claimant if the claim is determined to be valid.
The principal is liable for making a full reimbursement to the surety company. Our customers focus on avoiding claims against the bond. The best strategy for achieving this goal is to abide by the state’s rules and regulations.
How Much Does a Mortgage Broker or Banker Bond Cost in Iowa?
The cost of an Iowa mortgage broker bond or mortgage banker bond is between $1,000 - $15,000. The required bond amount is between $100,000 and $150,000:
- $100,000 for annual loan volumes up to $100 million.
- $150,000 for annual loan volumes exceeding $100 million.
Typically, the bond premium falls between 1% and 10%. You may also hear this referred to as the cost of the bond or the bond rate. Use the chart below to estimate your bond cost before applying.
|
Iowa Mortgage Broker and Mortgage Banker Bond Cost by Credit Score |
|||
|
Surety Bond Amount |
700 or Higher |
600-699 |
599 or Below |
|
$100,000 |
$1,000 - $3,000 |
$3,000 - $5,000 |
$5,000 - $10,000 |
|
$150,000 |
$1,500 - $4,500 |
$4,500 - $7,500 |
$7,500 - $15,000 |
Are you curious about the factors that affect how much a bond costs? In addition to taking the applicant’s credit scores into account, we consider the applicant’s prior bond history as well as industry experience and finances.
How to Get a Mortgage Broker or Banker Bond in Iowa
1. Apply For Your Bond
Obtaining an Iowa mortgage broker bond or mortgage banker bond is a simple, three-step process. To get started, choose from one of these convenient application options.
- Apply for a bond online – Our online application is accessible to you 24/7. Many of our customers only need a few minutes to complete the form.
- Call us at (888) 592-6631 – Our knowledgeable bond specialists are available to support you and answer questions over the phone.
When applying, you will need:
- Bond name (Mortgage Surety Bond)
- Bond amount ($100,000)
- Email and contact information
2. Get a Quote
Our customers receive a bond quote quickly by email after they apply. Upon request, we can review the quote with you personally. As you review the document, please get in touch with us if you require revisions.
3. Purchase Your Bond
For your convenience, you can sign the paperwork and pay your invoice online. After doing so, we will send your invoice to you via email.
Iowa Mortgage Broker and Mortgage Banker Bond Requirements
When applying for an Iowa mortgage broker license or a mortgage banker license, an electronic surety bond must be submitted through the NMLS. The Iowa Division of Banking is responsible for monitoring licensing compliance for mortgage brokers and mortgage bankers.
In order to abide by the licensing regulations monitored by the Iowa Division of Banking, the appropriate surety bond form must be used. Both mortgage brokers and mortgage bankers use the Mortgage Surety Bond. The bond is continuous, but it may be canceled by the surety. The surety must provide the obligee and the principal with a 30-day notice of cancellation in writing.
If you have any questions regarding the required bond amount, the definition and role of mortgage brokers in Iowa, etc., please contact us.
One of our new customers had a few questions about mortgage broker licensing in Iowa. When he contacted our bond specialists for clarification, we provided him with the detailed information he needed. He enjoyed how easy it was to get answers from our responsive team, and he took advantage of the online application to get a fast quote.
How to Get Your Mortgage Broker or Banker License in Iowa
The licensing process for Iowa mortgage brokers and mortgage bankers is completed via the Nationwide Mortgage License System. The following items are required to apply for a license:
- Application
- Surety bond
- Financial statements
- Credit report
- Criminal background check
- Resident or registered agent
- Certificate of Authority/Good Standing
- Formation documents
Sources
Nationwide Mortgage Licensing System. (n.d.). Checklist compiler.
https://mortgage.nationwidelicensingsystem.org/slr/SitePages/Checklist-Compiler.aspx
Iowa Division of Banking. (n.d.). Home [Website].
https://idob.iowa.gov/
Iowa Legislature. (n.d.). Iowa Code § 535B.4: License requirements [PDF].
https://www.legis.iowa.gov/docs/code/535B.4.pdf
Nationwide Multistate Licensing System & Registry. (n.d.). Iowa exempt company registration ESB form [PDF].
https://mortgage.nationwidelicensingsystem.org/slr/StateForms/IA_Exempt%20Company%20Registration%20ESB_V1.pdf