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Colonial Surety is authorized by the Nationwide Multistate Licensing System & Registry (NMLS) to write electronic mortgage broker bonds. If you are not registered with the NMLS, please visit the NMLS website.
What is an Iowa mortgage broker bond?
A mortgage broker bond is required by the State of Iowa as a prerequisite for any licensed mortgage broker to legally conduct business. The bond guarantees that the mortgage broker will operate in accordance with the applicable government rules and regulations.
Who needs this bond?
Mortgage brokers, mortgage lenders, and mortgage loan originators are required by State of Iowa statutes to obtain a bond.
What is the amount of the bond?
The State of Iowa requires mortgage brokers and bankers to furnish a surety bond in the amount of $100,000 from a surety company authorized to do business in Iowa, along with evidence of whether the applicant is seeking to transact business as a mortgage broker, mortgage banker, or closing agent. Mortgage brokers and bankers are required to submit that $100,000 bond until such time as the superintendent pursuant to administrative rule determines a bond amount that reflects the dollar value of loans originated. Closing agents are required to submit a $25,000 bond, unless the administrator, by rule, establishes a higher bond amount.
What is the process to obtain the bond?
Colonial offers the direct and digital way to obtain a mortgage broker bond. We are the insurance company — which means no agent, no broker, and no middleman. The steps are easy — get a quote online, fill out your information, and enter your payment method. Your bond will be available instantly. It’s that simple!
What does the bond cost?
A mortgage broker bond is reasonably priced and easy to obtain. You may notice that with other insurance agents and middlemen, your premium rate will fluctuate and include additional hidden fees and costs. Colonial offers our lowest possible rate. Premium is based on the amount of the bond required by the State of Iowa Division of Banking.
Does it matter where I get the bond?
It is important to understand how surety bonds work, and who is the insurance company issuing your bonds. It is easy to obtain a mortgage broker bond when you deal directly with a quality insurance company licensed to write surety bonds. Colonial is an A (Excellent) rated insurance company by A.M. Best that has been incorporated since 1930. We are NMLS approved, Treasury listed, and licensed and admitted in all U.S. states and territories.
