Virginia Mortgage Loan Originator Bond

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Bond Penalty: $25,000 to $150,000 by origination volume

All candidates for licensure as a mortgage loan originator (MLO) in Virginia, securing a Virginia Mortgage Loan Originator Bond is a critical step in the process. This surety bond serves as a financial guarantee that you will adhere to the state's laws and regulations governing mortgage loan origination. The Virginia Mortgage Loan Originator Bond is mandated by the Virginia State Corporation Commission (SCC) under §6.2-1703 of the Code of Virginia. Its primary purpose is to protect consumers and the state from potential misconduct by mortgage loan originators. By obtaining this bond, you assure the SCC and your clients that you will perform your duties ethically and in compliance with all applicable laws.

Determining the Surety Bond Penalty

The required bond amount is based on the total dollar amount of residential mortgage loans you originated in the previous calendar year:

  • $0 – $5,000,000: $25,000 bond
  • $5,000,001 – $20,000,000: $50,000 bond
  • $20,000,001 – $50,000,000: $75,000 bond
  • $50,000,001 – $100,000,000: $100,000 bond
  • Over $100,000,000: $150,000 bond.

These amounts are stipulated in the Virginia Administrative Code 10VAC5-160-15.

Who Needs This Bond?

Any individual applying for a mortgage loan originator license in Virginia is required to obtain this bond, unless they are an employee or exclusive agent of a licensed or exempt mortgage lender or broker who has already secured a bond covering their activities. This ensures that all MLOs operating in the state are held to the same standards of accountability.

Bond Form and Filing Process

The official bond form, known as CCB-8814, must be completed and submitted to the SCC's Bureau of Financial Institutions. The bond must be issued by a corporate surety authorized to conduct business in Virginia. Once obtained, the bond should be filed through the Nationwide Multistate Licensing System (NMLS) as part of your license application process.

Cost of the Bond

The premium you pay for the bond is a percentage of the total bond amount and is typically determined by your creditworthiness and financial history. For example, a $25,000 bond might cost around $94 per year, while a $150,000 bond could cost approximately $563 annually. These figures can vary, so it's advisable to obtain quotes from multiple surety bond providers to find the best rate.

Maintaining Compliance

It's important to keep your bond active and in good standing throughout your licensure period. The bond must be continuously maintained, and any lapse could result in the suspension or revocation of your license. Additionally, if your loan origination volume increases, you may need to adjust your bond amount accordingly to remain compliant with state requirements.

Virginia surety bond leader, Surety One, Inc. is a specialist in the bonding needs of finance brokers, loan originators and loan servicers, including student loan servicers. We offer both the surety bonds and fidelity bonds needed by credit service professionals in all fifty states, Puerto Rico and the U.S. Virgin Islands. Questions about this surety bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat. A Virginia mortgage loan originator bond is quick, easy and delivered in hours.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

What We Need From You

Additional Attachments

  • Current Business Financial Statement (if over $50,000)