Louisiana Mortgage Lender Bonds

Louisiana State, Office of Financial Institutions has a LA Mortgage Lender Surety Bond requirement for those licensed as Residential Mortgage Lenders/Brokers, or Mortgage Loan Originators. The LA Mortgage Lender Bond is required to be in the amount of $25,000, or $50,000, depending on the originator’s, broker’s or lender’s loan volume of the previous year.

Dollar Amount of Total Loan           
Volume in Previous Calendar Years
Lenders, Brokers, and Originators                             Required Amount of Bond

$0 – $99,999,999                                                                $25,000     
           
$100,000,000 or greater                                                  $50,000

A Louisiana Mortgage Lender or Residential Mortgage Lender is any person who, directly or indirectly, originates or makes, or offers to originate or make a residential mortgage loan for another person.  It also includes a Mortgage Lender that only engages in funding loans originated by licensed Mortgage Brokers and Originators.  The Wholesale Lender has no originators and does not engage in retail originations.  
 
A LA Mortgage Broker or Residential Mortgage Broker is any person who for compensation or the expectation of compensation, negotiates, places, or finds, or offers to negotiate, place, or find a residential mortgage loan for another person.  Mortgage Broker also includes an approved Federal Housing Administration Loan Correspondent or a Residential Mortgage Lender who closes a residential mortgage loan in his own name but for whom the funding for the loan is provided by a third party lender in a process known as table funding.

A LA Mortgage Loan Originator is an individual who for compensation or gain or with the expectation of compensation or gain takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan.

Mortgage Loan Processors and Underwriters in the state who are compensated as independent contractors are also required to have a license and provide the required Louisiana Mortgage Lender Bond.