Minnesota Residential Mortgage Originator Bond
This bond is required by any person who, directly or indirectly, for compensation or gain or in expectation of compensation or gain, solicits or offers to solicit, or accepts or offers to accept an application for a residential mortgage loan through any medium or mode of communication from a borrower, or makes a residential mortgage loan.
| Preceding Year Aggregate Loan Amounts | Bond Amount Required | Annual Premium |
| $0- $10,000,000 | $125,000 | $750 |
| $10,000,001- $25,000,000 | $150,000 | $900 |
| $25,000,001- $100,000,000 | $200,000 | $1,200 |
| Exceeds $100,000,000 | $300,000 | $1.800 |
Overview
In Minnesota, residential mortgage originators are mandated to secure a surety bond as part of their licensing prerequisites through the Department of Commerce. The bond serves as a safeguard for consumers, offering financial recourse in case the originator conducts business in violation of legal and ethical standards.
The bond amount is determined based on the originator's annual loan volume, with minimum requirements ranging from $100,000 to $200,000. This bond must be obtained from a state-approved surety company. Originators must keep their bonds active and valid throughout their licensing tenure. Licenses expire on December 31 of each year and are renewable on January 1 of each year after that date.