About The Georgia Mortgage Broker Bond Requirement

by JW Bond Marketing Dept.

One of the most difficult places in the country to place a mortgage broker bond is in the state of Georgia. The Georgia mortgage broker bond language is mostly in favor of the obligee and is a substantial size bond. The state requires a $150,000 mortgage lender bond and $50,000 bond of their mortgage brokers. The later bond weighs on the heavier side of license bond on the average but the size of the bond does not scare away the underwriter from writing the bond. The underwriter will thoroughly examine your application and possibly request cash verification for the steep amount of the bond.While there are still markets willing to write such a high risk bond, most bonding companies tend to keep away from this mortgage broker bond. In order to write this bond, state language requires full submission. This submission includes general company information and business financial statements as all do however, bond companies also must submit resumes on managing members, statements on all owners, personal financial statements to name a few. Not many programs will write Georgia mortgage broker bonds with minimal information. That is why most bonding companies shy away from this bond. Still, there are some willing to endure writing Georgia mortgage broker bonds. When underwriting a bond in today’s market, most bonding companies require an aggregate bond as standard practice. Georgia state bond form lacks this language. This clause limits the total amount of claims to the bond. Simply stated, whether a single claim is $50,000 or there are five $10,000 claims, you cannot exceed $50,000 for what the bond was written. Georgia purposely lacks this aggregate language. This means a $50,000 bond could claim much more than what the bond is worth. The limitations are non-existent. The surety will make certain the principal will be held responsible and liable for all claim amountsGeorgia mortgage brokers are regulated by the Georgia Department of Banking and Finance. Applicants must pay $500.00 annual license fee and the state requires $250.00 investigation fee be paid. In addition, applicants must have a passport size picture and a copy of their income tax return on file along with CPA audited financial statements. Mortgage broker applicants are also required to have proof of education or two years of recent experience, original duplicate fingerprints and permission for pulling credit. Applicant must have a net worth of at least $25,000 and applicant incurs all fees. An applicant will be declined if there is past criminal action that has not been yet pardoned. If an applicant is out of state, they must have physical location within the state and not just a post office box. They must employ a minimum of one employee. If the mortgage broker’s state is other than Georgia, if their home state does not require a physical location, the broker may still obtain a Georgia license. Still, there are some willing to write Georgia mortgage broker bonds.Special programs for Georgia mortgage broker bonds are vague and unclear to date. First, you must make a full submission and qualify for the broker bond. After this difficult task and once approved, you may discover special programs. If you wish you can apply through: http://www.jwsuretybonds.com/mortgage_broker_bond.htm

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