How To Get Your Iowa Mortgage Broker License
Ready to start your career in the mortgage industry? If you want to be a mortgage broker in the state of Iowa then you'll need to get your mortgage broker license and bond. How do you do that? Read on to find out.
Who Needs A Mortgage Broker License?
Any person or company who negotiates, places, assists in placing, finds, or offers to negotiate, place, assist in placing or find mortgage loans on residential property for others in the state of Iowa needs a mortgage broker license.
You are not legally authorized to engage in mortgage brokering or mortgage lending activities in the state of Iowa until you have secured your mortgage license. This is due to the SAFE Mortgage Licensing Act statutes.
There are many requirements that you or your company will need to meet to secure your Iowa Mortgage Broker License. The main criteria are secure a mortgage bond and have the proper experience.
What Is A Mortgage Bond?
A mortgage broker bond is a type of license and permit surety bond required by a state agency for licensure pertaining to mortgage activities. Mortgage bonds protect your clients in case you provide poor advice, make an incorrect or unethical decision, or make in error in your client’s information. If your client suffers financial hardship because of your error, they are protected by the bond and ‘made whole’ by the surety bond
company. The responsibility is ultimately yours though, and you will need to reimburse the surety bond company for their payment to your client.
Mortgage brokers in the state of Iowa will need to secure a Iowa Mortgage Broker Bond in the amount of $100,000. This is not the amount you will need to pay for your bond though. You will only need to pay a percentage of this amount. The percentage is based on your personal credit history and your business financials.
How Do I Get My Mortgage Broker Bond?
You’ll need to work with a surety bond company and provide personal and business financial information so they can properly quote you. All surety bond companies are not unlike, though. Some surety bond companies have different underwriting than others, and some will charge hidden fees to process your bond.
At Surety Solutions, we carry a large variety of bond products to help you meet your licensing and bonding needs. We also provide you with quotes from over 30 different insurance companies so you can feel confident that you are getting the best rate that’s out there. So what are you waiting for? Getting your Iowa Mortgage Broker Bond is just one click away.
How Do I Get My Iowa Mortgage Broker License?
2. Purchase surety bond
4. Pay fees: totaling $500
5. Submit application electronically through NMLS and send any hard-copy paper documents to the address below: