Mortgage Broker and Lender (Dual License $50,000) NMLS Bond - Statewide in Virginia

Brief Summary

$50,000 is where a Virginia dual license bond starts, not where it has to stay. The State Corporation Commission's rule adjusts the bond every year by the residential loans you originated the year before, and a company with dual authority never drops below $50,000 even in a slow year. We write the amount your volume calls for and you pay an annual premium instead of posting the full sum.

A company licensed in Virginia as both a mortgage lender and a mortgage broker must keep a surety bond on file with the Commissioner under Va. Code 6.2-1604. Under 10VAC5-160-15 the minimum for dual authority is $50,000, and the bond is adjusted annually by residential mortgage loans originated during the preceding calendar year, reaching $75,000, $100,000 or $150,000 at higher volume.

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How to Apply for a Mortgage Broker and Lender (Dual License $50,000) NMLS Bond:

• Pull your residential mortgage loan originations for the preceding calendar year and find the matching amount on the 10VAC5-160-15 scale.
• Use $50,000 if the scale gives a lower figure, since that is the dual authority minimum.
• Have the company's legal name and NMLS ID as they appear on the license application.
• Provide owner and company information for the surety's underwriting.
• Pay the premium and file the bond with the Commissioner.
• Recheck the amount each year against the prior year's originations.

Detailed Information About the Virginia Mortgage Broker and Lender (Dual License $50,000) NMLS Bond:

The annual scale

10VAC5-160-15 says the bond amount shall be adjusted annually based upon residential mortgage loans originated during the preceding calendar year:

• $0 to $5,000,000: $25,000
• $5,000,001 to $20,000,000: $50,000
• $20,000,001 to $50,000,000: $75,000
• $50,000,001 to $100,000,000: $100,000
• Over $100,000,000: $150,000

The same rule sets floors by license type. A broker only license has a $25,000 minimum. A mortgage lender, or a company with dual authority as both lender and broker, has a $50,000 minimum. So a dual licensee with less than $5,000,000 of originations still carries $50,000, and a dual licensee that originated more than $20,000,000 last year owes more than the $50,000 printed in the license name.

What the statute requires of the bond

Va. Code 6.2-1604 requires the bond to be filed with the Commissioner, in a form approved by the Commission, with a corporate surety authorized to execute bonds in the Commonwealth. It secures performance of written agreements with borrowers, proper accounting for funds received, and compliance with the chapter and other applicable law. Aggregate liability cannot exceed the penal sum, and the bond must be continuously maintained in full force.

Fees and the dual license

Under Va. Code 6.2-1603 the license application fee is $1,000 for a company applying to act as both mortgage lender and mortgage broker, against $500 for one or the other. Each office where the business will be conducted adds a $150 application fee. These fees are not refundable. A lender, including a dual licensee, must also keep at least $200,000 in funds available for the operation of its business, in deposits, bank lines of credit or both.

Renewal and exemptions

Va. Code 6.2-1607 provides that a mortgage lender or broker license expires at the end of each calendar year unless renewed before that date. Va. Code 6.2-1602 exempts several groups from the chapter entirely, including lenders making three or fewer mortgage loans in any 12 consecutive months, banks, savings institutions and credit unions, insurance companies, and nonprofit corporations making home ownership loans for the disadvantaged.

Eligibility and Requirements for a Virginia Mortgage Broker and Lender (Dual License $50,000) NMLS Bond:

• Corporate surety authorized to execute bonds in Virginia.
• Bond form approved by the State Corporation Commission and filed with the Commissioner.
• Minimum of $50,000 for dual authority, adjusted upward by annual origination volume.
• At least $200,000 in funds available for the lending business.
• License application fee of $1,000 for dual authority plus $150 per office.

Virginia Mortgage Broker and Lender (Dual License $50,000) NMLS Bond FAQs:

Official and Additional Resources for the Virginia Mortgage Broker and Lender (Dual License $50,000) NMLS Bond: