License & Permit
Loan Broker Bond
A license bond some states require of businesses that arrange consumer or business loans for a fee.
- Required by
- State banking or consumer finance regulators and secretaries of state
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the state that the loan broker will follow the state's loan broker law and its contracts with borrowers. In North Carolina, the bond runs to the state, and any person damaged by the broker's breach of contract or violation of the law can recover actual losses up to the bond amount.
Who needs it
- Consumer loan brokers
- Business loan brokers in states that license them
- Companies arranging loans for a fee
What the underwriter looks at
- Personal credit
- Experience
- Loan volume
- Complaint history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is the bond?
It varies by state. North Carolina sets $10,000. Mississippi and Maine set $25,000 for consumer loan brokers.
Is this the same as a mortgage broker bond?
No. Mortgage brokers have their own license and bond. Loan broker laws usually cover non-mortgage loans.
Can I take an advance fee if I am bonded?
Not always. North Carolina, for example, bars loan brokers from collecting an advance fee before the loan closes.