Mortgage Banker Bond in Arkansas

[jbb1970]

I am a branch manager for a company and we are having a *heck* of a time getting a mortgage banker bond in Arkansas. We got approved for $165,000 in bonds for any states we want as long as it's not Arkansas.

Here's the scoop...
We need a $100,000 Mortgage Banker bond in Arkansas. We are a mortgage banker, we close our own loans with our own warehouse line of credit. However we do not service our own loans nor do any back-end. We sell the loans IMMEDIATELY after closing. It is my understanding that the last bond company we talked to stated Arkansas now has a 5-year tail on their bonds, meaning, if we stop doing loans in Arkansas or go out of business for any reason then the bond must still be good for 5 years after our last loan is closed.

We've talked to SEVERAL bond companies and according to our President the bond companies are requiring, basically, that we set aside the $100,000 (or something close to that) for the bond - so the same as a letter of credit - due to the 5 year tail Arkansas requires.

I haven't actually spoken to the bond companies, but I've helped our President find several of them. We are licensed and bonded in several states, and are having NO problems EXCEPT for Arkansas.

I need some quick, straight answers from any bond companies out there (that has direct experience with Mortgage Banker Surety Bonds in Arkansas) regarding this ASAP. Our home office is located in Texas, and we'd love to add Arkansas if at all possible. We've been in business a LONG time, and I am sure the Company and our President has excellent credit. Again, we've had NO problems getting a bond in any other State we requested. Not sure why Arkansas is such a bear!

Please call me ASAP if you can help.
My cell phone # is ###-243-5104 if you call me on June 6th, 2006. Thereafter, my office # is ###-827-8677.
Jon Bradshaw

[Admin]

Jon,

I spoke to someone from your office earlier, we can help. Most bonding companies will be hesitant to approve a bond with a tail on it. However, we have several bonding companies that realize that mortgage broker bonds and mortgage banker bonds are relatively low risk.

You can apply using our Online Commercial Surety Bond Application