Wyoming Mortgage Lender Bond: A Comprehensive Guide
This guide applies to Wyoming mortgage lenders and mortgage brokers who also provide lending services. For information on the bond requirements for broker only mortgage companies in Wyoming, click here.
At a Glance:
- Lowest Cost: $188 per year or $19 per month based on the applicant’s credit
- Bond Amount: $25,000
- Who Needs it: All mortgage lenders operating in Wyoming
- Purpose: To ensure the public will receive compensation for any damages should the mortgage lender fail to comply with licensing law
- Who Regulates Mortgage Lenders In Wyoming: The Wyoming Division of Banking
Background
Wyoming statute 40-23-104 requires all mortgage lenders 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 lenders engage in ethical business practices. To provide financial security for the enforcement of the licensing law, mortgage lenders must purchase and maintain a $25,000 surety bond to be eligible for licensure.
What is the Purpose of the Wyoming Mortgage Lender Bond?
Wyoming requires mortgage lenders 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 lender 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 lender 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 lender breaks licensing laws.
How Can an Insurance Agent Obtain a Wyoming Mortgage Lender Bond?
BondExchange makes obtaining a Wyoming Mortgage Lender 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? Gain access 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 Lender Bond?
Surety companies will run a credit check on the owners of the lending company to determine eligibility and pricing for the Wyoming Mortgage Lender Bond. Lenders with excellent credit and work experience can expect to receive the best rates. Lenders 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 lender’s credit.
How Much Does the Wyoming Mortgage Lender Bond Cost?
The Wyoming Mortgage Lender Surety Bond can cost anywhere between $188 to $1,250 per year or $19 to $125 per month. 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 Lender Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 700+ | $188 | $19 |
| 650 – 699 | $250 | $25 |
| 625 – 649 | $313 | $32 |
| 600 – 624 | $470 | $47 |
| 550 – 599 | $1,000 | $100 |
| 500 – 549 | $1,250 | $125 |
*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 Lender”?
Wyoming statute 40-23-102 defines a mortgage lender as any business entity who makes residential mortgage loans to Wyoming consumers.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Mortgage Lenders Apply for a License in Wyoming?
Mortgage lenders in Wyoming must navigate several steps to secure their license. Below are the general guidelines, but lenders should refer to the NMLS’s application guidelines for details on the process.
License Period – The Wyoming Mortgage Lender License expires on December 31 of each year and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Mortgage lenders must purchase and maintain a $25,000 surety bond
Step 2 – Request a NMLS Account
The Wyoming Mortgage Lender License application is submitted electronically through the Nationwide Multistate Licensing System (NMLS). To submit a license application, lenders must first request to obtain an NMLS account.
Step 3 – Complete the Application
All Wyoming Mortgage Lender License applications can be completed online through the NMLS. Mortgage lenders must complete the entire application, and submit the following items:
-
- Audited company financial statements prepared by a CPA
- Company business plan containing the following information:
- Marketing strategy
- Products
- 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 lenders must pay the following fees when submitting their license application:
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- $500 license fee
- $36.25 background check fee (per person)
- $15 credit report fee (per person)
How Do Wyoming Mortgage Lenders Renew Their License?
Mortgage lenders can renew their license online through the NMLS. Lenders need to simply login to their account to access their renewal application. The Wyoming Mortgage Lender 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 Lender License?
Wyoming does not require mortgage lenders to obtain any form of liability insurance as a prerequisite to obtaining a business license. Lenders must purchase and maintain a $25,000 surety bond.
How Do Wyoming Mortgage Lenders File Their Bond?
Mortgage lenders should submit the completed bond form, including the power of attorney, electronically through the NMLS. The Wyoming Mortgage Lender Surety Bond requires signatures from both the surety company that issues the bond and a representative from the lending 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 Lenders Do to Avoid Claims Against Their Bond?
To avoid claims against their bond, mortgage lenders 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 Lenders in Wyoming?
Wyoming does not require mortgage lenders 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 Lender Customers?
Wyoming conveniently provides a public database to search for active mortgage lenders 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.