- April 10, 2017
- Posted by: Surety Bond Experts
- Category: Consumer Loan Companies, Surety Bond, Surety Bond Producers, Surety Bond Rates, Surety Bonds
Surety bonds for Washington consumer loan companies will have new requirements beginning January 1, 2018. Although a little under a year away, it is important to familiarize yourself with these new requirements. We here at GotSuretyBonds.com have your back. Below, we have formulated a list of new requirements for consumer loan surety bonds in Washington state:
- The amount of loans in previous years determines the consumer loan license bond.
- If the company was founded in the current year and no loans have been closed, a $30,000 surety bond must be provided.
- Bond amounts will vary based on the type of loan the consumer loan company handles. For example, those who work with nonresidential loans or only residential mortgage loans will have their surety bond amount decided by:
$0-20 million will need a $30,000 surety bond
$20-40 million will need a $50,000 surety bond
$40-50 million- $100,000 surety bond
$50 million +- $150,000 surety bond
- Other companies will have their surety bond amount determined by their loan origination volume. For example, those companies which collect payments on mortgages. Another example are those that process loan applications and disburse residential mortgage loans.
- Mortgage brokers must purchase a surety bond upon licensing. The necessary bond is a $30,000 surety bond. After this, the surety bond amount will be evaluated yearly, using the list in #2. The amount of the surety bond will be determined based on the total annual principal of the loans.
- Consumer loan companies who work only with residential mortgage loans may post a surety bond. This can be done instead of maintaining the net worth required.
- If they do choose a surety bond, it must be a $1 million surety bond.
There are many changes coming to Consumer Loan Companies in Washington. Let us handle your surety bond needs. We here, at GotSuretyBonds.com are an independent bond-only agency, committed to the principles of service, integrity and professionalism. We view our clients, employees and underwriters as our “business family”. We strive to offer each and every one of them unsurpassed attention and support to ensure a mutually beneficial relationship. We have a keen understanding that success for everyone is only possible through helping all of our constituents achieve their goals and objectives, we believe that a truly satisfied customer, employee or vendor is the best business strategy of all. Our surety bonding services help create a blueprint for success. Our principals have relationships nationwide and have earned the trust of underwriters. Because of our credibility within the underwriting community and longevity in the industry, we are able to act as powerful advocates for our clients. We have a unique, tactical process to professionally design and present a thorough financial picture with risk and financial analyses to the surety market.