Maryland Mortgage Lender Licensee Surety Bond

What is the Maryland mortgage lender licensee bond?

The state of Maryland Department of Labor requires mortgage lenders to post a surety bond in the amount of $50,000, $100,000, or $150,000 depending upon your business's annual loan volume. This bond provides protection to the state and to your customers should they suffer losses as a result of unlawful actions by your lending company.

Maryland's Department of Labor defines a mortgage lender “as any person who is a mortgage broker, makes a mortgage loan to any person, or is a mortgage servicer." That's why this surety bond is sometimes referred to as a mortgage broker bond in MD.

Why do I need this bond?

When you apply for a business license to operate as a mortgage lender, broker, or servicer in Maryland, your application must be accompanied by a mortgage lender surety bond. Applications submitted without the proper surety bond policy are considered incomplete and may be terminated from processing by the Commissioner of Financial Regulation.

How much does a Maryland mortgage lender bond cost?

As a lender in MD, your required bond amount will vary depending on your annual loan volume. The minimum coverage amount is $50,000, which applies to mortgage lenders and brokers who handled less than $3,000,000 in loans during the past 12 months.

The amount you pay for a surety bond policy will depend on the bond's full coverage amount plus a review of your financial qualifications, such as personal credit history and business experience. Premiums for highly qualified applicants are in the range of 0.75% to 3% of the bond amount, or $375 to $1,500 for a $50,000 bond.

Annual Loan Volume Bond Amount Required Cost
(Annual Premium)
Under $3,000,000 $50,000 $375*
$3,000,000-$10,000,000 $100,000 $750*
Over $10,000,000 $150,000 $1,125*

* Cost can vary depending on the bond amount required and your credit rating

Get Your Maryland Mortgage Lender Bond


What are the steps to be licensed as a mortgage lender in Maryland?

According to the Maryland Department of Labor, Licensing & Regulation, all new license applicants must initiate applications through the Nationwide Multistate Licensing System (NMLS).

You will be required to provide the following:

  • Personal financial statement.
  • Criminal background check.
  • Memorandum of tax certification.
  • Organizational chart.
  • Type of business, with formation documents.
  • Business plan.
  • License and registration fee of $850.
  • Application fee of $100.

Consult the application checklist to get the complete instructions and requirements for entering information into the NMLS.

What else should I know about the Maryland mortgage lender licensee bond?

A surety bond is a binding legal contract among three parties:

  • The principal (your mortgage lending/broker company). 
  • The obligee (in this case the state of Maryland).
  • The surety (the insurance carrier underwriting the bond).

You can avoid claims by properly paying any judgments awarded to plaintiffs against you. However, in the event that a judgment is unpaid, the plaintiff will file a claim with the surety company to make payment. The surety company will seek reimbursement from you for any unpaid claims.

Questions? Call NNASurety Bonds at 855-215-2160
Monday to Friday, 6 a.m. to 5 p.m. (PT)