Mortgage Broker Bond

The bond is required by some states as a prerequisite for any licensed mortgage broker to legally conduct business.

Colonial Surety is authorized by the Nationwide Multistate Licensing System & Registry (NMLS) to write electronic mortgage broker bonds. 

What is a mortgage broker bond?

Some States require a mortgage broker bond as a prerequisite for any licensed mortgage broker to legally conduct business. The bond guarantees that the mortgage broker will operate in accordance with the applicable government rules and regulations.

Who needs this bond?

Mortgage brokers, mortgage lenders, and mortgage loan originators are required by some states to obtain a bond.

What is the amount of the bond?

The amount of the bond varies by State requirement. See below for a list of states and required bond amounts.

What is the process to obtain the bond?

First, apply here by clicking get started and we will finish

Colonial offers the direct and digital way to obtain a mortgage broker bond. We are the insurance company — which means no agent, no broker, and no middleman. The steps are easy — get a quote online, fill out your information, and enter your payment method. Your bond will be available instantly. It’s that simple!

What does the bond cost?

A mortgage broker bond is reasonably priced and easy to obtain. You may notice that with other insurance agents and middlemen, your premium rate will fluctuate and include additional hidden fees and costs. Colonial offers our lowest possible rate. Premium is based on the amount of the bond required by the State.

Does it matter where I get the bond?

It is important to understand how surety bonds work and who is the insurance company issuing your bonds. It is easy to obtain a mortgage broker bond when you deal directly with a quality insurance company licensed to write surety bonds like Colonial. We are rated “A” Excellent by A.M. Best Company and incorporated since 1930. We are  an NMLS approved Surety, Treasury listed, and licensed and admitted in all U.S. states and territories.

State Specific Bond Requirements

Mortgage Broker Surety Bond Amounts by State:

  1. Alabama: $25,000
  2. Alaska: $75,000
  3. Arizona: $10,000 – $15,000
  4. Arkansas: $100,000
  5. California:
    • Under the California Finance Lenders Law (CFLL): $25,000 – $100,000 (based on loan volume)
  6. Colorado: $25,000
  7. Connecticut: $50,000 – $100,000 (based on loan volume)
  8. Delaware: $25,000
  9. District of Columbia: $12,500 – $50,000 (based on loan volume)
  10. Florida: $10,000
  11. Georgia: $150,000
  12. Hawaii: $50,000
  13. Idaho: $25,000
  14. Illinois: $50,000
  15. Indiana: $50,000 – $100,000 (based on loan volume)
  16. Iowa: $100,000
  17. Kansas: $50,000
  18. Kentucky: $50,000 – $500,000 (based on loan volume)
  19. Louisiana: $25,000
  20. Maine: $25,000 – $100,000 (based on loan volume)
  21. Maryland: $50,000 – $150,000 (based on loan volume)
  22. Massachusetts: $75,000
  23. Michigan: $25,000
  24. Minnesota: $100,000
  25. Mississippi: $25,000
  26. Missouri: $50,000
  27. Montana: $25,000
  28. Nebraska: $100,000
  29. Nevada: $50,000
  30. New Hampshire: $50,000
  31. New Jersey: $150,000
  32. New Mexico: $50,000
  33. New York: $10,000 – $100,000 (based on loan volume)
  34. North Carolina: $75,000
  35. North Dakota: $25,000
  36. Ohio: $50,000
  37. Oklahoma: $100,000
  38. Oregon: $50,000
  39. Pennsylvania: $100,000
  40. Rhode Island: $50,000
  41. South Carolina: $50,000
  42. South Dakota: $25,000
  43. Tennessee: $90,000
  44. Texas: $50,000
  45. Utah: $25,000 – $50,000 (based on loan volume)
  46. Vermont: $25,000
  47. Virginia: $25,000 – $100,000 (based on loan volume)
  48. Washington: $30,000 – $150,000 (based on loan volume)
  49. West Virginia: $50,000
  50. Wisconsin: $300,000
  51. Wyoming: $25,000

Notes:

  • Variable Bond Amounts: Some states, such as California, Connecticut, Indiana, Kentucky, Maryland, New York, and Washington, have bond amounts that vary based on the loan volume or other factors related to the size of the business.
  • eBond Requirements: Many states accept or require bonds to be submitted electronically through the NMLS platform.

It’s important to consult with the NMLS Resource Center or your state’s mortgage regulatory agency to confirm the specific bond amount for your business, as these amounts may change or have additional requirements based on your unique situation.

Helpful Resources

Become a Mortgage Broker in 5 Steps
License & Permit Bonds
Great Mortgage Broker?
License & Permit Bonds
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