Tennessee Mortgage License NMLS ESB (Electronic Surety Bond)
What is a Mortgage License Electronic Surety Bond?
Mortgage Lenders, Brokers and Servicers must meet the Tennessee Department of Financial Institutions’ license requirements to conduct business in the state of Tennessee. One of the state’s licensing requirements is to purchase and submit an Electronic Surety Bond to the Nation-wide Multistate Licensing System and Registry (NMLS).
The purpose of the Surety Bond is to protect your clients if you perform your responsibilities unlawfully or unethically. Your client can make a claim against your bond if they believe you have failed at your responsibilities as a licensed Mortgage Lender, Broker or Servicer. When a claim is filed, the surety company holding your bond will perform an investigation. The claimant may receive up to the full bond amount if a claim is found to be valid. As the principal of the bond, you are held accountable for repaying the surety back in full when a payout on a claim is made.
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How much does a TN Mortgage Bond cost? [How often do I have to make payments?]
Before calculating the cost of your Mortgage Bond, you’ll need to determine the bond amount the state requires for your role. Loan Brokers need an Electronic Surety Bond in the amount of $90,000. While Lenders and Loan Servicers require a $200,000 bond. However, Loan Brokers who also operate as a Lender and/or Servicer will need to secure the larger $200,000 bond.
A common misconception is the bond amount equals the cost of the bond. Fortunately, your Surety Bond will not cost nearly that much. In fact, applicants with a good credit score generally only pay 1-5% of the bond amount. This cost is known as the premium and is only paid once for a full term. When the term ends, typically within a year’s time, you’ll be given the option to renew your bond. Select the bond amount you need to view no-obligation quotes from leading surety companies.
Am I eligible for a Surety Bond with bad credit?
Getting a bond with bad credit is a possibility. Our partnerships with several leading surety companies include underwriters who deal in assisting applicants with non-standard credit.
Due to the higher risk involved, bonds issued to applicants with non-standard credit generally fall in the 5-15% of the total bond amount in cost. Although, when quoting your bond, we make a soft-pull on your credit. This means there is no adverse effect on your credit score. Get your quote today!
What are the requirements to get a Mortgage Broker, Lender or Servicer License in Tennessee?
These are the Tennessee state Mortgage Licensing requirements set by the Tennessee Department of Financial Institutions and NMLS.
- Pay NMLS Fees
- $1,000 License & Registration Fee
- $100 Processing Fee
- $15 Per Control Person Credit Report
- $36.25 Per MU2 Individual for FBI Criminal Background Check
- Complete and Submit Company Form (MU1)
- Financial Statements Prepared by CPA (Must show tangible net worth of at least $25,000)
- Electronic Surety Bond (ESB)
- Mortgage Loan Broker – $90,000
- Mortgage Lender – $200,000
- Mortgage Loan Servicer – $200,000
- Anti-Money Laundering (AML) / Bank Secrecy Act (BSA) Policy
- Business Plan
- Certificate of Authority / Good Standing Certificate
- Formation Documents
- Management & Organizational Charts
- Credit Report Explanations
- Verification of Experience
Where to get an Electronic Surety Bond?
Get your official Tennessee Mortgage Broker, Lender and Servicer Electronic Surety Bond online with Surety Solutions, A Gallagher Company. Get your quote in minutes by selecting the bond amount you need below.
We’re licensed to issue bonds in Tennessee and the rest of the USA. Let our team of surety experts know if you have any questions about our application or bonds. Send us an email to info@suretysolutons.com or call (866) 722-9239. Don’t wait, get your quote today!
Additional Resources
Make sure you get your bond for the correct amount by checking with our calculator.
How to avoid claims on your Mortgage Bond.
Everything you need to know about the Electronic Surety Bond (ESB) process.
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