West Virginia Mortgage Broker or Lender Bond

The West Virginia Division of Financial Institutions is the responsible authority for mortgage broker and mortgage lender licensing. The regulations detailing licensing requirements are under West Virginia Code 31-17. Licensees are required to 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.

If someone has experienced financial loss by a mortgage broker’s or lender’s violations of state regulations, he or she may file a claim with the surety. The surety is charged with investigating the claim. If a claim is deemed valid, the surety pays the claimant up to the penal sum of the bond. 

Then, the principal is liable for paying the full claim amount to the surety. The financial impact of a valid claim is substantial, so avoiding claims against the bond is in your best interest.

The cost of a West Virginia mortgage broker bond is between $500 and $15,000, with bond amounts ranging from $50,000 to $150,000, based on loan origination volume:

• Up to $3 million: $50,000 bond required.
• Over $3 million to $10 million: $75,000 bond required.
• Over $10 million: $100,000 bond required.
• Mortgage brokers also acting as table-funded lenders: $150,000 bond required.

A mortgage lender bond costs between $1,000 and $25,000, with bond amounts ranging from $100,000 to $250,000, depending on loan origination volume:

• Up to $3 million: $100,000 bond required.
• Over $3 million to $10 million: $150,000 bond required.
• Over $10 million: $250,000 bond required.

And Mortgage lenders who also act as servicers:

• Loan originations up to $10 million: $200,000 bond required.
• Loan originations over $10 million: $250,000 bond required.

The bond premium falls between 1% and 10%. You may also hear this referred to as the cost of the bond. Using the chart below, you can quickly estimate your bond cost before applying.

From time to time, our customers inquire about the factors impacting how much a bond costs. The factors that affect the cost of the bond are the applicant’s bond history, credit scores, industry experience and finances.

1. Apply For Your Bond

Obtaining a West Virginia mortgage broker bond or mortgage lender bond is an easy, three-step process. First, apply for your new bond using one of these convenient options. 

1. Apply for a bond online – Our valued customers have access to the bond application form online 24/7. Often, this short form only takes a few minutes to complete. 
2. Call us at (888) 592-6631 – If you have questions about the bond application or prefer to apply by phone, our bond specialists are available to speak with you.  

When applying, you will need:

• Bond name (West Virginia Mortgage Broker Surety Bond or West Virginia Mortgage Lender Surety Bond) 
• Bond amount ($50,000-$250,000)
• Email and contact information

2. Get a Quote

Soon after submitting your completed bond application, you will receive a bond quote from us via email. We are happy to review your quote with you, if requested. If you have a revision request, please contact us. 

3. Purchase Your Bond

The final step is to pay the invoice and sign the bond document online. After doing so, you will receive your original bond by email.

To apply for a West Virginia mortgage broker license or a mortgage lender license, an electronic surety bond and the other required documents must be submitted to the NMLS. The West Virginia Division of Financial Institutions ensures compliance of the state’s licensing regulations. 

Applicants must use the appropriate bond form: the West Virginia Mortgage Broker Surety Bond for mortgage brokers or the West Virginia Mortgage Lender Surety Bond for mortgage lenders. 

These bonds are continuous in nature, but they are subject to cancellation by the surety. The surety is required to provide a 30-day written cancellation notice to the obligee and the principal.

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

Recently, a returning customer reached out to us with a question about updating his bond amount. His company’s origination volume increased dramatically, and he was unsure if he needed to purchase a new bond. Our customer appreciated getting his question answered quickly and thoroughly by our knowledgeable bond experts. 

The licensing process for a West Virginia mortgage broker or mortgage lender is completed through the Nationwide Mortgage License System. The following items are required to apply for your new license:

• Application
• Surety bond
• Resident or registered agent
• Background check
• Secretary of State documentation
• Certificate of Authorization/Good Standing
• Trade name registration
• Credit service organization filing
• Business registration certificate
• Financial statements
• Contact individuals
• Mortgage loan originator applications
• Certificate of Compliance

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

West Virginia Division of Financial Institutions. (n.d.). Home. West Virginia Division of Financial Institutions.
https://dfi.wv.gov/Pages/default.aspx

Nationwide Mortgage Licensing System. (n.d.). West Virginia mortgage lender surety bond. Nationwide Mortgage Licensing System.
https://mortgage.nationwidelicensingsystem.org/slr/StateForms/WV%20Mortgage%20Lender%20Surety%20Bond_ESB_V1.pdf

West Virginia Legislature. (n.d.). West Virginia Code § 31-17. Mortgage lenders and brokers. West Virginia Legislature.
https://code.wvlegislature.gov/31-17/

Nationwide Mortgage Licensing System. (n.d.). West Virginia mortgage broker surety bond. Nationwide Mortgage Licensing System.
https://mortgage.nationwidelicensingsystem.org/slr/StateForms/WV%20Mortgage%20Broker%20Surety%20Bond_ESB_V1.pdf