Unless exempted a Vermont mortgage broker bond is required from any company or person who for compensation or gain negotiates, places, assists in placement, finds or offers to negotiate, place, assist in placement or find mortgage loans, other than commercial loans, on real property located in Vermont. Each office or satellite location of the same broker, whether located in Vermont or not must obtain a separate license and accompanying Vermont mortgage broker bond. Licensing as in most states is processed through the Nationwide Mortgage Licensing System (NMLS). The surety bond form is addressed in 8 V.S.A. § 2203(a), which provides a formula for determining the proper bond amount. For, . . .
(1.) $0.00 to $2,000,000.00 in mortgage loans, a Vermont mortgage broker bond not less than $25,000.00;
(2.) $2,000,000.01 to $5,000,000.00 in mortgage loans, a Vermont mortgage broker bond not less than $50,000.00;
(3.) $5,000,000.01 to $15,000,000.00 in mortgage loans, a Vermont mortgage broker bond not less than $75,000.00;
(4.) $15,000,000.01 or more in mortgage loans, a Vermont mortgage broker bond not less than $100,000.00.
The Commissioner of Banking may change the minimum bond requirements set forth in the statute if he or she feels it prudent to do so. If an action is commenced agains a Vermont mortgage broker bond, the Commissioner may require a new bond and if there is a SUCCESSFUL claim then a new surety bond is mandatory. The obligation states that the broker will comply with all of the rules, regulations and orders made by the Commissioner, and will pay to the Commissioner and/or to any person or persons having a right of action against the broker any and all monies due. The Vermont mortgage broker bond can be canceled by the surety by giving written notice by registered mail to the broker AND the Commissioner which will be effective sixty days after receipt by the Commissioner. No cancellation affects any liability which may arise from acts or omissions which may have occurred prior to the termination of the sixty-day period. Surety One, Inc. is your national surety leader, and a specialist in the bonding needs of the mortgage lending and broker services sector. We can offer both the surety and fidelity bonds required of mortgage professionals in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Visit us at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email us at Underwriting@SuretyOne.com for a Vermont mortgage broker bond application or information on ANY insurance need.