Rhode Island Mortgage Loan Broker or Lender Bond

The Rhode Island Department of Business Regulation Division of Banking is responsible for monitoring mortgage broker and lender licensing. The licensing requirements are described in the General Laws of Rhode Island Chapter 19-14. A surety bond is a condition of licensing.

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.

Someone who has been impacted by unethical or fraudulent actions by a mortgage broker or lender can file a claim. The claim is investigated by the surety. If the surety determines that the claim is valid, it compensates the claimant accordingly.

Then, the principal is responsible for reimbursing the surety for that full sum. The financial effect of a claim is substantial, so avoiding claims against the bond is in the best interest of our customers.

The cost of a Rhode Island mortgage broker bond is between $200 and $2,000. This cost is based on a $20,000 surety bond. However, if the mortgage broker has four to seven branch locations, the bond amount increases by $10,000. With eight or more branch locations, the bond amount increases by $25,000.

The cost of a lender bond in Rhode Island is between $500 and $5,000. The required bond amount is $50,000. If the lender has four to seven branch locations, the bond amount increases by $10,000. If the lender has eight or more locations, the bond amount increases by $25,000.

The bond premium ranges from 1% to 10%. You might hear this referred to as the cost of the bond or the bond rate. Before applying, use the chart below to estimate your bond cost. 

Our customers sometimes inquire about how we determine how much a bond costs. The factors that impact the cost of a bond are the applicant’s bond history, credit scores, finances and industry experience.

1. Apply For Your Bond

Obtaining a Rhode Island mortgage broker bond or lender bond is a simple, three-step process. First, apply using one of these convenient methods. 

1. Apply for a bond online – Access our online bond application 24/7. This is a short form that many of our customers complete in a few minutes. 
2. Call us at (888) 592-6631 – Contact our bond experts by phone for personal assistance with your application. 

When applying, you will need:

• Bond name (Loan Broker Surety Bond or Lender Surety Bond) 
• Bond amount ($20,000 - $50,000 or more)
• Email and contact information

2. Get a Quote

Once you complete your application, we will quickly email a bond quote to you. Our bond specialists are available to review your quote with you, if desired. If you request a revision, please let us know.

3. Purchase Your Bond

The last step in our easy process is to make your payment and sign the document online. Then, your original bond will be sent to you via email.

To apply for a Rhode Island mortgage broker license or a lender license, an electronic surety bond must be submitted to the NMLS along with the other required application items. The Rhode Island Department of Business Regulation oversees licensing and ensures compliance with bonding requirements for mortgage professionals. Applicants must provide the correct surety bond form, either the Mortgage Loan Broker Surety Bond for brokers or Mortgage Lender Surety Bond for lenders. Both of these bonds remain in effect until they are terminated. The surety can cancel the bond by providing a 30-day notice to the principal and the obligee.

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

When one of our new customers contacted us recently, she needed assistance completing her bond application. She was grateful for how friendly our knowledgeable bond specialists were and how quickly she received a quote.

A new customer recently contacted us with a question about the type of bond he needed. We spent time answering all of his questions thoroughly, enabling him to proceed with the bond application with confidence. The customer appreciated the personalized attention we provided and how easy our process is.

The licensing process for a Rhode Island mortgage broker or lender license is completed through the Nationwide Mortgage License System. The following items are required when applying for a license:

• Application
• Surety bond
• Qualifying individual
• Credit report
• Financial statement
• Formation documents
• Certificate of Authority/Good Standing
• Criminal background check
• Financial statement of legal entities owned  
• Business plan
• Resident or registered agent
• Primary contact employees
• Disclosure questions
• Management chart
• Organizational chart
• Web addresses
• Insurance claim check endorsement, for lenders only

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

Rhode Island Department of Business Regulation. (n.d.). Banking. Rhode Island Department of Business Regulation.
https://dbr.ri.gov/banking-securities-and-charitable-organizations/banking

Nationwide Mortgage Licensing System & Registry. (n.d.). RI Loan Broker License ESB [PDF].
https://mortgage.nationwidelicensingsystem.org/slr/StateForms/RI_Loan%20Broker%20License%20ESB_v1.pdf

Nationwide Mortgage Licensing System & Registry. (n.d.). RI Lender License ESB [PDF].
https://mortgage.nationwidelicensingsystem.org/slr/StateForms/RI_Lender%20License%20ESB_v1.pdf

Casetext. (n.d.). Chapter 19-14.1: Lenders and loan brokers. Casetext.
https://casetext.com/statute/general-laws-of-rhode-island/title-19-financial-institutions/chapter-19-141-lenders-and-loan-brokers