These two factors have lead to a much lower frequency of surety bond losses and now, a significantly lower rate.
Sacramento, CA (PRWEB) July 29, 2013
One of the markets that Surety1 represents has just introduced a new rate for highly qualified mortgage brokers of .5%.* Previously, the lowest rate for this type of bond was .75%. As is usually the case, we expect other markets to begin to file new lower rates as the loss experience in this class of business has improved.
Only a few years ago, mortgage broker surety bonds were causing the surety industry a lot of losses. The bond is required by most states to insure compliance with laws and regulations of the industry. During the real estate bubble, a lot of brokers were not playing by the rules and surety bond claims rose to an unacceptable level. Some of the surety companies that Surety1 represents exited this line of business completely, lowering competition and increasing rates. While the economy as a whole has stabilized, the mortgage industry as is much better regulated than it was in the past. Both of these factors have lead to a much lower frequency of surety bond losses and now, a significantly lower rate.
Mortgage brokers in need of a surety bond can still apply online at surety1.com, have the approval the same day, and have world class customer service, at new low price. Surety1 also has markets available for high risk clients at the lowest possible rate.
Surety Solutions Insurance Services, Inc. (Surety1) is an independent insurance agency based in Rancho Cordova, California and licensed in all fifty states. Surety1 specializes in the placement of surety bonds and other specialty insurance products. For more information on obtaining a bond, contact Surety Solutions through its website, surety1.com, by calling toll-free, 877-654-2327, or by e-mailing info(at)surety1(dot)com.
*Subject to underwriting approval.