Jumping into the real estate workforce continues to be an appealing idea for people at various spots of their careers. Not only is becoming a mortgage broker out of college a good move it is also attractive when switching careers, as well. People who generally enter this line of work have a knack for working with people and numbers. They also tend to have a good head on their shoulders - something the state of California wants to make sure they use fully which is why they require a mortgage broker bond.
Why Is A Mortgage Broker Bond Required?
The state of California requires that mortgage brokers take out a surety bond to cover their practice should any situations arise such as mishandling a person’s bank loan transaction. This surety bond is to show the state that the mortgage broker will work in good faith and uphold all state statutes as they pertain to real estate.
Having this surety bond in place is a time saver for the courts in the event a money judgement needs to be handled right away. This bond protects the consumer against any faulty practice that may result in a financial loss. A mortgage broker bond is necessary for any person serving as a mortgage broker for a potential buyer.
How Much Does A Surety Bond Cost?
The cost of a surety bond is going to depend on state and local regulations. In the state of California a mortgage broker bond typically covers around $50,000. This may vary based on local ordinances and/or size of the mortgage broker firm.
People interested in obtaining their mortgage broker license must think ahead to obtaining a mortgage broker bond. Without this surety protection they will not be operating by state code and therefore could be subject to fine and punishment.
Need A Bond In A Hurry?
One of the great things about Jurisco is that we can help our clients quickly. With a fast turnaround time, Jurisco’s lawyer trained staff can set up a mortgage broker bond in the state of California without the hassle. Contact our office today to get started.