Wyoming Mortgage Broker Bond: A Comprehensive Guide
September 15, 2021
This guide applies to Wyoming mortgage brokers who don’t provide lending services. For information on the bond requirements for Wyoming mortgage brokers who do provide lending services, click here.
At a Glance:
- Average Cost: Between $188 to $1,250 per year based on the applicant’s credit
- Bond Amount: $25,000
- Who Needs it: All mortgage brokers operating in Wyoming
- Purpose: To ensure the public will receive compensation for any damages should the mortgage broker fail to comply with licensing law
- Who Regulates Mortgage Brokers In Wyoming: The Wyoming Division of Banking
Wyoming statute 40-23-104 requires all mortgage brokers operating in the state to obtain a license with the Division of Banking. The Wyoming legislature enacted the licensing laws and regulations to ensure that mortgage brokers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, mortgage brokers must purchase and maintain a $25,000 surety bond to be eligible for licensure.
What is the Purpose of the Wyoming Mortgage Broker Bond?
Wyoming requires mortgage brokers to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the broker fails to comply with the regulations set forth in the Wyoming Residential Mortgage Practices Act. Specifically, the bond protects the public in the event the broker engages in any acts of fraud or breaches any contracts made with consumers. In short, the bond is a type of insurance that protects the public if the broker breaks licensing laws.
How Can an Insurance Agent Obtain a Wyoming Mortgage Broker Bond?
BondExchange makes obtaining a Wyoming Mortgage Broker Bond easy. Simply login to your account and use our keyword search to find the “mortgage” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
Is a Credit Check Required for the Wyoming Mortgage Broker Bond?
Surety companies will run a credit check on the owners of the mortgage company to determine eligibility and pricing for the Wyoming Mortgage Broker Bond. Brokers with excellent credit and work experience can expect to receive the best rates. Brokers with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the broker’s credit.
How Much Does the Wyoming Mortgage Broker Bond Cost?
The Wyoming Mortgage Broker Surety Bond can cost anywhere between $188 to $1,250 per year. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost on the $25,000 bond requirement.
$25,000 Mortgage Broker Bond Cost
|Credit Score||Bond Cost (1 year)|
|650 – 699||$250|
|625 – 649||$313|
|600 – 624||$470|
|550 – 599||$1,000|
|500 – 549||$1,250|
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
How Does Wyoming Define “Mortgage Broker”?
Wyoming statute 40-23-102 defines a mortgage broker as any business entity who assists a consumer in obtaining a residential mortgage loan.
How Do Mortgage Brokers Apply for a License in Wyoming?
Mortgage brokers in Wyoming must navigate several steps to secure their license. Below are the general guidelines, but brokers should refer to the NMLS’s application guidelines for details on the process.
Mortgage brokers who wish to perform lending services must obtain the Wyoming Mortgage Lender/Broker License
License Period – The Wyoming Mortgage Broker License expires on December 31 of each year and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Mortgage brokers must purchase and maintain a $25,000 surety bond
Step 2 – Request a NMLS Account
The Wyoming Mortgage Broker License application is submitted electronically through the Nationwide Multistate Licensing System (NMLS). To submit a license application, brokers must first request to obtain an NMLS account.
Step 3 – Complete the Application
- Audited company financial statements prepared by a CPA
- Company business plan containing the following information:
- Marketing strategy
- Target markets
- Operating structure
- Certificate of Good Standing
- Sample copies of all disclosures, agreements, and forms used throughout the loan process
- Company formation documents
- Company management and organizational charts
- Trust account authorization
Mortgage brokers must pay the following fees when submitting their license application:
- $500 license fee
- $36.25 background check fee (per person)
- $15 credit report fee (per person)
How Do Wyoming Mortgage Brokers Renew Their License?
Mortgage brokers can renew their license online through the NMLS. Brokers need to simply login to their account to access their renewal application. The Wyoming Mortgage Broker License expires on December 31 of each year and must be renewed before the expiration date.
What Are the Insurance Requirements for the Wyoming Mortgage Broker License?
Wyoming does not require mortgage brokers to obtain any form of liability insurance as a prerequisite to obtaining a business license. Brokers must purchase and maintain a $25,000 surety bond.
How Do Wyoming Mortgage Brokers File Their Bond?
Mortgage brokers should submit the completed bond form, including the power of attorney, electronically through the NMLS. The Wyoming Mortgage Broker Surety Bond requires signatures from both the surety company that issues the bond and a representative from the mortgage company. The surety company should include the following information on the bond form:
- Legal name and state of incorporation of entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Date the bond is signed
- Date the bond goes into effect
What Can Wyoming Mortgage Brokers Do to Avoid Claims Against Their Bond?
To avoid claims against their bond, mortgage brokers in Wyoming must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Do not breach any contracts made with consumers
What Other Insurance Products Can Agents Offer Mortgage Brokers in Wyoming?
Wyoming does not require mortgage brokers to obtain any form of liability insurance as a prerequisite to obtaining a business license. However, most reputable businesses will seek to obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Wyoming Mortgage Broker Customers?
Wyoming conveniently provides a public database to search for active mortgage brokers in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services