Mortgage brokers are subject to the laws and regulations that govern lending practices in the real estate industry. Before obtaining their professional licenses, mortgage brokers must post surety bonds — these may be called mortgage broker bonds, residential mortgage originator bonds, loan broker bonds, or mortgage loan originator bonds — in each state they practice business.
The ProSure Group issues surety bonds for mortgage brokers in all 50 states for premiums as low as 1 percent of the bond amount. Call us today to speak with one of our surety experts who will explain the regulations in your state, find you the lowest available market rate, and guide you step-by-step through the application process. Or request a free, no-obligation price quote today.
Most states have a law requiring mortgage brokers to post surety bonds as part of their licensing applications. These mortgage broker surety bonds give financial protection to consumers who are applying for mortgages. They also incentivize brokers to act ethically and comply with state regulations.
There is no set premium for a mortgage broker surety bond. Instead, each bond’s cost is determined based on the state’s minimum requirements and the applicant's credit. At The ProSure Group, applicants pay only small percentages of their bonds’ total amounts.
State minimums for the bonds can vary widely. Whereas mortgage broker-license applicants in Florida need only $10,000 bonds, those in California are required to post $50,000 bonds. Applicants in New York, meanwhile, post bonds between $10,000 and $100,000, depending on the loan volume of the originator. Our surety experts can inform you of the bond requirements in your state.
For qualified applicants, the standard market rate for a mortgage broker bond is between 1 percent and 3 percent of the amount. In other words, a broker with good credit may be eligible to pay just $100 to satisfy the $10,000 bond requirement in Florida or New York.
A few bad marks on your credit report do not have to prevent you from earning a mortgage broker license. Even if you have bad credit, you can still obtain the surety bond you need from The ProSure Group. We have a variety of rate options to get applicants with all credit levels approved. And we issue the bond for the lowest market rate for which you qualify. To see the rate you qualify for, submit our form to receive a free, no-obligation price quote.
The surety bond premiums at The ProSure Group are competitive and based on the lowest market rates. With that said, there may be ways to reduce the rate you pay. When you apply for a bond, we calculate the premium based on the bond amount and whether your credit meets our underwriting criteria. In some cases, you can lower the rate for which you qualify by providing additional supporting documents (business or personal financial disclosures). Secondly, mortgage broker bonds expire and have to be renewed after a certain number of years. If your credit improves between the renewal periods, we can adjust the bond’s premium accordingly at the next renewal.
Whether you are applying for a first mortgage broker license or expanding your lending practice to other states — a different bond is required in each state where you lend — The ProSure Group will help you obtain the right bond to meet your state’s requirements. We offer the lowest market rates available, eliminating guessing games about cost, and qualified applicants pay premiums as low as 1 percent. We also have mortage broker and lender bonds. Call us today to get the bond you need.
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The mortgage license surety bond you need is at The ProSure Group. We are authorized to provide mortgage bonds nationwide. Remember, prerequisites for licensure vary by state and license type. Some states require one license for brokers, lenders, and servicers, while other states have individual licenses. And though some surety bonds amounts are constant, others amounts vary based on the past-year loan volume. Here are the types of mortgage licenses and state-specific mortgage license bonds that we offer. Keep in mind that licensure laws and bond requirements may change over time. So whether or not you see the bond you need, get in touch with anyway for more information or a free quote as low as 1 percent of the total amount.
Alabama mortgage broker surety bonds are required by the State Banking Department for applicants who perform residential lending under the Consumer Credit Act and all applicants under the Mortgage Brokers Licensing Act. Bond amounts vary based on the amount of residential loans an applicant closed in Alabama during the previous year. The range for bond amounts is between $25,000 for loan volumes of $25 million or less and $75,000 for loan volumes over $100 million. All bonds are valid for one year and can be renewed.
Arizona mortgage broker surety bonds are used in lieu of cash or cash alternatives to meet the the Arizona Department of Financial Institutions licensing requirements. Bond amounts are $10,000 for applicants who only have institutional investors — such as licensed real estate brokers, insurance companies or state or national banks, savings and loan associations, or government agencies — and $15,000 otherwise. These same requirements apply to commercial mortgage broker bonds. Arizona does not require mortgage loan originators to submit bonds, although fees may be due if the employer does not have a $200,000 lender originator bond. All mortgage bonds can be submitted electronically via the Nationwide Mortgage Licensing System & Registry (NMLS), which The ProSure Group is set up to use.
Though mortgage brokers and servicers have separate licensure prerequisites under Arkansas Securities Department regulations, the bond requirements are the same for each license. Arkansas mortgage broker and lender surety bonds must be for $100,000, as specified in the Rules of the Fair Mortgage Lending Act. On the bond, the name of the principal insured has to exactly match the applicant’s full legal name, including “doing business as” (DBA). Separate bonds are required for additional licenses.
California mortgage broker surety bonds are only necessary as part of the conditions for a restricted broker license issued by the commissioner of the state’s Department of Real Estate. However, there are surety bond requirements for mortgage lenders and servicers, as expressed under the California Residential Mortgage Lending Act (CRMLA) and enforced by the state’s Department of Business Oversight. The amounts for these bonds are outlined in the California Code of Regulations (10 CCR Section 1950.205.1. Surety Bond) and range from $50,000 to $200,000. Individual bond amounts are determined by the value of the residential mortgage loans that originated or were serviced by the licensee or associated employees during the last year.
Though Colorado repealed mortgage broker bond requirements in 2009, mortgage loan originator bonds are still in effect. The amounts of these bonds are based on how many employees the loan originator has: single loan originators need $25,000 bonds; individuals at loan originators with fewer than twenty employees or agents need $100,000 bonds; while those at entities with more than 20 people need $200,000 bonds. Colorado mortgage license surety bonds must meet additional regulations to be in full compliance with the state’s Department of Regulatory Agencies Mortgage Loan Originator Program.
Florida has separate licenses for mortgage brokers, lenders, servicers, and originators. Bond requirements are listed under Chapter 494 of the Florida statutes and enforced by the state’s Office of Financial Regulation. While Florida mortgage broker’s bonds are no longer required, lender’s license applicants still submit $10,000 bonds that are payable to the state and valid for one year, at which time they can be renewed. A bond must be valid for as long as a mortgage license is active. All the same requirements apply to correspondent mortgage lender’s bonds in Florida.
Georgia mortgage broker (processor) surety bonds are licensure requirement under the Georgia Residential Mortgage Act (GRMA) and enforced by the state’s Department of Banking and Finance. Applicants for broker’s licenses must furnish $150,000 surety bonds. Meanwhile, brokers who use warehouse lines are considered lenders, and all mortgage lenders must have surety bonds of $250,000. Loan originators have no bond requirements but must receive sponsorship by an employer that is a licensed broker or lender with the proper surety bond coverage. Georgia participates in electronic surety bond submissions via NMLS.
Indiana mortgage lender surety bonds are a prerequisite for licensure under the state’s Department of Financial Institutions regulations. Licensure is mandatory for any mortgage lender who commits more than five First Lien Mortgage Loans or Subordinate Lien Mortgage Loans. Applicants must submit surety bonds of $100,000, and maintain them for however long the licenses are active. Indiana allows for electronic surety bond submissions via NMLS.
Missouri residential mortgage loan broker bonds are required from brokerage companies for licensure. Bond requirements are set by the Missouri Division of Finance, and amounts vary based on the aggregate value of the loans brokered, funded, or serviced by the brokerage company in the last 12 months. Bond amounts may span from $50,000 (for loan amounts of $7.5 million or less) to $1 million (for loan amounts over $60 million).
The Montana Division of Banking and Financial Institutions requires mortgage broker, lender, and servicer companies to post surety bonds for licensure. Multiple licenses require separate bonds. Based on the company’s volume of loan production the prior year, mortgage broker and lender bonds can be between $25,000 and $100,000. Mortgage servicer bonds, meanwhile, are always $100,000. Montana also accepts electronic bond submissions through NMLS.
Nevada mortgage broker and servicer surety bonds are licensure requirements per regulations by the state’s Department of Business & Industry Division of Mortgage Lending. Mortgage broker bonds range from $50,000 for total past-year loan values less than $20 million to $75,000 for totals more than $20 million. Alternatively, mortgage servicer bonds can be from $100,000 to $300,000, again based on loan volume the previous year. Nevada participates in electronic surety bond uploads through NMLS.
Unlike most states, New York requires mortgage brokers, servicers, or originators to provide surety bonds after their license applications are approved but before they are registered. The bonds must be submitted by mail to the superintendent of the state’s Department of Financial Services, and amounts differ based on bond type. Mortgage broker surety bonds must be $10,000, while loan servicer bonds must be $250,000. Mortgage loan originators must supply surety bonds and surety bond certification forms. Loan originator bond amounts span from $10,000 to $100,000 based on the volume of loans that originated with the applicant the prior year. Loan originators are not covered by originating entity surety bonds. The latter is required pursuant to New York Codes, Rules and Regulations Section 420.15(c); their principal amounts are based on the number of loan originators who are required to be licensed at the originating entity.
The Ohio Residential Lending Act (ORMLA) (2017) consolidated the state’s mortgage laws. ORMLA Certificates of Registration authorize issuees to act as mortgage brokers, lenders, and servicers. Applicants must submit surety bonds as part of the registration form (RMLA Surety Bond), furnished by the Ohio Department of Commerce Division of Financial Services. Ohio mortgage lender surety bond amounts are based on each applicant’s volume of residential mortgage loan origination nationwide (not statewide, as in most states) during the previous year. Mortgage servicer companies that do not also perform lending or brokering must submit bonds of at least $50,000. All applicants must upload their original surety bonds electronically in NMLS. Need help with ORMLA implementation? Speak to one of our surety bonds experts for guidance.
Before offering mortgage loans in Oregon, a company or individual must be licensed by the state’s Division of Financial Regulation, which involves submitting a surety bond. Oregon mortgage lender and servicer surety bond amounts are $50,000, while mortgage loan originator bonds range from $50,000 to $200,000. The last bonds also must be submitted on behalf of the originator by an employer as part of the company’s normal licensing process. Oregon participates in electronic surety bond submission via NMLS.
South Carolina mortgage broker surety bonds are mandated by the South Carolina Department of Consumer Affairs (DCA). These bonds should be for $25,000 and submitted via electronic upload and the mail. Mortgage lenders and servicers are required by the state’s Board of Financial Institutions (BFI) to submit bonds, as well. These bond amounts range from $50,000 to $150,000 based on the aggregate dollar amount of the applicant’s mortgage loans processed in the last year. Also known as mortgage lender special deposit bonds, these bonds must be emailed to BFI (cfd@bofi.sc.gov) before their original copies are mailed.
Tennessee has one mortgage license for mortgage brokers, lenders, and servicers. However, the state’s bond requirements vary depending on the applicant’s intended purpose. Surety bonds of $90,000 are required for applicants who are brokers, while lenders or servicers must supply $200,000 bonds. Any applicant who intends to be a dual mortgage broker and lender or servicer can submit just the $200,000 bond. Regardless, the bond must be valid for one year, at which time it can be renewed, and must cover legal action against the licensee for two years.
Texas Residential Mortgage Loan Servicer bonds are a prerequisite for licensure under Texas Department of Savings and Mortgage Lending regulations. The surety bond amount must be either $25,000 if the applicant’s volume of mortgage servicing in the previous year was less than $25 million, or $50,000 otherwise.
Surety bonds are part of the licensing processes for mortgage brokers and lenders in Virginia. Bonds for mortgage brokers must be $25,000, while the name of the principal insured on the bond must match exactly the name registered with the Clerk of the State Corporation Commission. The same procedures apply to mortgage lender bonds in Virginia, only the bond amount is $50,000. However, anyone already licensed as brokers can merely attach an original rider to raise their current bonds from $25,000 to $50,000. As for mortgage loan originator surety bonds, these are dealt with through the Virginia Bureau of Financial Institutions. Loan originators not employed by licensed or exempt persons must submit individual surety bonds. The bond amount is determined based on one’s mortgage business certification form. All mortgage license bonds in Virginia can be uploaded through NMLS, or mailed along with associated powers of attorney.
Vermont mortgage broker, mortgage broker sole proprietor, and lender surety bonds satisfy individual licensing requirements under the state’s Department of Financial Regulation guidelines. Either type of mortgage broker’s bond must be $25,000, while lender’s bonds are set at $50,000. Vermont accepts electronic surety bonds uploaded via NMLS.
An electronic surety bond is one of the four requirements for a mortgage broker license under the State of Washington Department of Financial Institutions regulations. Washington mortgage broker bond amounts are vary based on applicants’ previous annual total loan volumes. Amounts may span from $20,000 for loan volumes of $20 million or less to $60,000 for loan volumes greater than $40 million. The state allows all mortgage license bonds to be submitted electronically via NMLS.