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The Utah Department of Financial Institutions is the authority on mortgage loan originator licensing and compliance. Under Utah Title 61, Chapter 2C, licensing rules are established. A requirement for mortgage loan originator licensing is a surety bond.
This surety bond is an agreement between three parties:
- Principal: The mortgage loan originator that needs to get the bond.
- Obligee: The entity requiring the principal to get bonded.
- Surety: The company that issues the bond.
A surety bond is an assurance that anyone that has been financially impacted by a mortgage loan originator’s unethical behavior will be fairly compensated. When a claim is filed, the surety determines its validity. On validated claims, the surety compensates the claimant accordingly.
After the surety company provides compensation to a claimant, the principal must then reimburse the surety for that full amount. According to our customers, avoiding claims against the bond is easiest to do when you abide by the state’s regulations.
How Much Does a Mortgage Loan Originator Bond Cost in Utah?
The cost of a Utah mortgage loan originator bond is between $125 and $5,000. This cost is based on a bond amount between $12,500 and $50,000. The required bond amount varies based on the originator’s loan volume during the previous year.
The bond rate ranges from 1% to 10%. This may also be called the cost of the bond or the bond premium. This chart will help you estimate your bond cost before submitting your application.
|
Utah Mortgage Loan Originator Bond Cost by Credit Score |
|||
|
Surety Bond Amount |
700 or Higher |
600-699 |
599 or Below |
|
$12,500 |
$125 - $375 |
$375 - $625 |
$625 - $1,250 |
|
$25,000 |
$250 - $750 |
$750 - $1,250 |
$1,250 - $2,500 |
|
$50,000 |
$500 - $1,500 |
$1,500 - $2,500 |
$2,500 - $5,000 |
|
$100,000 |
$1,000 - $3,000 |
$3,000 - $5,000 |
$5,000 - $10,000 |
Some of our customers are interested in the factors that affect how much a bond costs. In addition to credit scores, bond rates are based on the applicant’s bond history, finances and industry experience.
How to Get a Mortgage Loan Originator Bond in Utah
1. Apply For Your Bond
Obtaining a Utah mortgage loan originator bond is a quick process with three easy steps. First, apply for your bond using your choice of convenient method.
- Apply for a bond online – Complete the online application at any hour of the day. Often, our customers complete this brief form in a few minutes.
- Call us at (888) 592-6631 – Our bond specialists are available to answer your bond questions and accept our application by phone.
When applying, you will need:
- Bond name (Mortgage Loan Originator Bond)
- Bond amount ($12,500 to $50,000)
- Email and contact information
2. Get a Quote
After applying for your bond, you will quickly receive your quote via email. Our customers appreciate the ability to review their quotes in detail with one of our bond associates. As you review the quote, please let us know if you identify any details that need to be revised.
3. Purchase Your Bond
Sign the bond documents and pay the invoice conveniently online. After taking these final steps, your bond will be delivered to you by email.
Utah Mortgage Loan Originator Bond Requirements
When applying for a Utah mortgage loan originator license, an electronic surety bond must be submitted through the NMLS. The Utah Department of Financial Institutions is the authority on mortgage loan originator licensing. Both businesses and individuals engaged in brokering residential mortgages must be licensed and bonded in Utah.
The Utah Department of Financial Institutions requires licensees to submit the bond form with the other required license application documents. To maintain your mortgage loan originator license, you must maintain your bond. For a loan originator, the range is from $12,500 to $50,000 depending on loan volume:
|
Utah Mortgage Loan Originator Surety Bond |
|
|
Loan Origination Amount |
Surety Bond Amount |
|
up to $5 million |
$12,500 |
|
$5 to $15 million |
$25,000 |
|
over $15 million |
$50,000 |
For a loan entity, the required bond amount ranges from $25,000 to $100,000.
|
Utah Mortgage Business Entity Surety Bond |
|
|
Loan Origination Amount |
Surety Bond Amount |
|
up to $10 million |
$25,000 |
|
$10 to $30 million |
$50,000 |
|
over $30 million |
$100,000 |
If you have any questions regarding the required bond amount, the definition and role of mortgage loan originators in Utah, etc., please contact us.
One of our new customers contacted our office recently about getting a mortgage loan originator bond. As a first-time applicant, he was unsure about the required bond amount. We provided the information he needed and helped him set up his new bond over the phone. He was appreciative of our support and speedy process.
How to Get Your Mortgage License in Utah
The licensing process for Utah mortgage loan originators is completed via the Nationwide Mortgage License System. To apply for your originator license, you must submit the required surety bond with your application.
Sources
Nationwide Mortgage Licensing System. (n.d.). Checklist compiler.
https://mortgage.nationwidelicensingsystem.org/slr/SitePages/Checklist-Compiler.aspx
Utah Department of Financial Institutions. (n.d.). Home [Website].
https://dfi.utah.gov/
Utah Department of Financial Institutions. (n.d.). Section R343-5-2: Surety bond requirements. In Utah administrative code: Mortgage loan originator surety bond requirements.
https://casetext.com/regulation/utah-administrative-code/financial-institutions/title-r343-nondepository-lenders/rule-r343-5-mortgage-loan-originator-surety-bond-requirements/section-r343-5-2-surety-bond-requirements
Utah State Legislature. (n.d.). 61-2c-203. Licensing requirements—Exemptions. Utah State Legislature.
https://le.utah.gov/xcode/Title61/Chapter2C/61-2c-S203.html