Frequently Asked Questions (FAQ)
Bond Amount is $50,000.00. Standard Rate is 1.000% per year; with a minimum premium of $100.00.
California Residential Mortgage Lender and/or Servicer Bond
California Residential Mortgage Lender and/or Servicer Bond
The California Residential Mortgage Lender and/or Servicer Bond is a type of financial guarantee required for most mortgage lenders to operate in California. This bond serves to protect consumers and government entities from fraud, contract violations, or other issues related to the activities of mortgage lenders and/or servicers in the state.
What does a Residential Mortgage Lender and/or Servicer do?
Residential Mortgage Lender and/or Servicer is a business that provides mortgage loans for purchasing residential properties and services existing mortgage loans. Mortgage lenders offer loans to homebuyers, while servicer companies manage these loans by processing payments, handling client inquiries, ensuring timely payments, and working with borrowers facing payment issues.
Example: Boris and his mortgage lending business
Boris is the owner of a company that provides mortgage loans and services them in Moscow. A young man once approached Boris, wanting to buy his first apartment but lacking sufficient funds. Boris and his team evaluated the client’s financial status, helped him find the right mortgage plan, and provided a loan with favorable terms.
How much does the bond cost for mortgage lenders and/or servicers in California?
The bond amount for mortgage lenders in California is $50,000.00, with a standard rate of 1.000% per year and a minimum premium of $100.00.
Frequently Asked Questions
How much does the bond cost?
The bond amount is $50,000.00 with a minimum premium of $100.00 per year.
Who is required to obtain this bond?
All mortgage lenders and servicers in California are required to obtain this bond to operate legally.
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Execution Notes
Bond is electronically signed by the Surety Attorney in Fact.
Filing Method
Surety will file the bond on behalf of the principal direct with the obligee.
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