Mortgage Broker Bond in Texas
The Real Estate market has seen better days, but being a mortgage broker is still a high demand responsibility. A Texas mortgage broker works with the borrower/homeowner to negotiate a mortgage with the bank or mortgage lender. In order to work as a mortgage broker in Dallas, Houston or any other Texas city, the broker must have a mortgage broker bond per Texas statute.
The mortgage broker is a “middleman” position, but can help people avoid getting bum mortgage deals such as subprime loan that will cause drastic increases in monthly payments. Any licensed broker operating in Texas must have a surety bond guaranteeing his or her compliance with state regulations. The Texas Department of Savings and Mortgage Lending and the Office of the Consumer Credit Commissioner, both located in Austin, Texas, are the regulating agencies overseeing the mortgage industry and its surety bond requirements.
A Texas mortgage broker license is for an individual and for the company the individual represents. The bonding process is the same way. A mortgage bonding company is mandated to having a Texas mortgage broker bond, as are its individual employees. The bonds protect the borrower/homeowner in the event the mortgage broker handles the situation poorly resulting in a financial loss.
Mortgage brokers operating without their mortgage broker bond may be violating state law. Texas mortgage brokers are encouraged to contact Jurisco to discuss their mortgage broker needs to avoid a disruption in business and to better understand Texas mortgage broker bond requirements.