Mortgage Broker Surety Bonds

What is a mortgage broker surety bond?

A mortgage broker surety bond is a binding legal agreement designed to encourage honest, ethical and legal behavior in how you run your brokerage. If you act in violation of state regulations and cause harm to your clients, the surety that holds the bond can be tapped to compensate them for financial losses. You, the mortgage loan broker or originator, will then be required to pay back the full amount to the surety company.

Mortgage brokers working in Illinois may also know this surety bond by the name “residential mortgage license bond."

Why do I need a mortgage broker surety bond?

Many states require mortgage brokers, or loan originators, to post a surety bond as part of the licensing process to operate a mortgage loan business. You should check the regulations in your state for specifics related to your mortgage brokerage.

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How much does a mortgage broker bond cost?

Your bond premium can range from .75% to 3%, depending on your personal credit score and on your business's financial health and history.

Here is a list of the states in which NNA Surety Bonds provides bond policies for mortgage brokers, with premiums as low as .75%.

Cost of Mortgage Broker Surety Bonds
State Mortgage Broker Bond Mortgage Banker/ Lender Bond Mortgage Servicer Bond Cost*
(Annual Premium)
ColoradoShow Details $25,000 / $15,000 N/A N/A 0.75% of the bond amount
IllinoisShow Details $20,000 - $150,000 $20,000 - $150,000 $50,000 0.75% of the bond amount
New YorkShow Details $10,000 - $150,000 $50,000 - $500,000 TBD 0.75% of the bond amount
VirginiaShow Details $25,000 - $150,000 $25,000 - $150,000 TBD 0.75% of the bond amount
New JerseyShow Details $100,000 - $300,000 $100,000 - $300,000 TBD 0.75% of the bond amount

Select your state to see bond prices

Alabama $25,000 - $75,000 N/A N/A 0.75% of the bond amount
Alaska $75,000 $75,000 N/A 0.75% of the bond amount
Arizona $10,000/ $15,000 $25,000/ $100,000 N/A 0.75% of the bond amount
Arkansas $100,000/ $150,000/ $200,000 $100,000/ $150,000/ $200,000 $100,000/ $150,000/ $200,000 0.75% of the bond amount
California (CFL License) N/A $25,000/ $100,000 N/A 0.75% of the bond amount
California (RMLA License) N/A $50,000 $50,000 0.75% of the bond amount
Colorado (Individual) $25,000 N/A N/A 0.75% of the bond amount
Colorado (Company) $100,000/ $200,000 N/A N/A 0.75% of the bond amount
Connecticut $50,000 $100,000 - $500,000 $100,000 0.75% of the bond amount
District of Columbia $12,500 - $200,000 N/A N/A 0.75% of the bond amount
Delaware $25,000 $25,000 - $200,000 N/A 0.75% of the bond amount
Florida No Bond Requirement No Bond Requirement No Bond Requirement 0.75% of the bond amount
Georgia $150,000/ $250,000 $150,000/ $250,000 N/A 0.75% of the bond amount
Hawaii No Bond Requirement No Bond Requirement $100,000 0.75% of the bond amount
Iowa $100,000 No Bond Requirement No Bond Requirement 0.75% of the bond amount
Idaho No Bond Requirement No Bond Requirement No Bond Requirement 0.75% of the bond amount
Illinois $20,000 - $150,000 $20,000 - $150,000 $50,000 0.75% of the bond amount
Indiana $100,000 No Bond Requirement No Bond Requirement 0.75% of the bond amount
Kentucky (Individual) $20,000 N/A N/A 0.75% of the bond amount
Kentucky (Company) $50,000 $250,000 No Bond Requirement 0.75% of the bond amount
Kansas $50,000 - $125,000 $50,000 - $125,000 No Bond Requirement 0.75% of the bond amount
Louisiana N/A $25,000/ $50,000 No Bond Requirement 0.75% of the bond amount
Massachusetts $75,000 $75,000 - $500,000 No Bond Requirement 0.75% of the bond amount
Maryland N/A $50,000 - $150,000 N/A 0.75% of the bond amount
Maine $25,000 $50,000 No Bond Requirement 0.75% of the bond amount
Michigan (Individual Originator) $10,000 - $50,000 N/A N/A 0.75% of the bond amount
Michigan (Company Originator) $50,000/ $150,000/$250,000 $50,000/ $150,000/$250,000 N/A 0.75% of the bond amount
Michigan Broker/Lender/Servicer $25,000/ $100,000 $25,000/ $100,000 $25,000/ $100,000 0.75% of the bond amount
Minnesota $50,000 - $200,000 $100,000 - $200,000 $100,000 - $200,000 0.75% of the bond amount
Missouri $50,000 - $250,000 $50,000 - $500,000 N/A 0.75% of the bond amount
Mississippi $25,000/ $150,000 $25,000/ $150,000 N/A 0.75% of the bond amount
Montana $25,000/ $50,000/ $100,000 $25,000/ $50,000/ $100,000 $75,000 - $350,000 0.75% of the bond amount
North Carolina $75,000 - $250,000 $150,000 - $500,000 TBD 0.75% of the bond amount
North Dakota $25,000 $25,000 TBD 0.75% of the bond amount
Nebraska $100,000 - $200,000 $100,000 - $200,000 TBD 0.75% of the bond amount
New Hampshire $50,000 $100,000 TBD 0.75% of the bond amount
New Jersey $100,000 - $300,000 $100,000 - $300,000 TBD 0.75% of the bond amount
New Mexico $50,000 - $150,000 $50,000 - $150,000 TBD 0.75% of the bond amount
New York $10,000 - $150,000 $50,000 - $500,000 TBD 0.75% of the bond amount
Nevada $50,000 - $75,000 $50,000 - $75,000 TBD 0.75% of the bond amount
New York $10,000 - $150,000 $50,000 - $500,000 TBD 0.75% of the bond amount
Ohio $150,000 $150,000 TBD 0.75% of the bond amount
Oklahoma N/A $5,000 TBD 0.75% of the bond amount
Oregon $50,000 - $200,000 $50,000 - $200,000 TBD 0.75% of the bond amount
Pennsylvania $50,000 - $150,000 $100,000 - $500,000 TBD 0.75% of the bond amount
Rhode Island $25,000 $50,000 TBD 0.75% of the bond amount
South Carolina $25,000 - $55,000 $50,000 - $150,000 TBD 0.75% of the bond amount
South Dakota $25,000 $25,000 TBD 0.75% of the bond amount
Tennessee $45,000 - $135,000 $100,000 - $300,000 TBD 0.75% of the bond amount
Texas N/A N/A $200,000 0.75% of the bond amount
Utah $12,500 - $50,000 N/A TBD 0.75% of the bond amount
Virginia $25,000 - $150,000 $25,000 - $150,000 TBD 0.75% of the bond amount
Vermont $25,000 - $100,000 $50,000 - $150,000 TBD 0.75% of the bond amount
Washington $30,000 - $60,000 $30,000 - $150,000 TBD 0.75% of the bond amount
Wisconsin $120,000 $300,000 TBD 0.75% of the bond amount
West Virginia $50,000 - $150,000 $100,000 - $250,000 TBD 0.75% of the bond amount
Wyoming $25,000 - $100,000 $25,000 - $100,000 TBD 0.75% of the bond amount

Call now to lock in your price

855-215-2160

Monday to Friday, 6 a.m. to 5 p.m. (PT)

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

What are some mortgage broker bond requirements?

State laws regulating mortgage loan professionals vary, but many states require you to get a surety bond for licensing purposes.

Here are some steps to take if you want to qualify for a mortgage broker bond:

  1. Get in touch with the department in your state government that handles business licensing. Many states have helpful websites with checklists for getting started.
  2. Determine whether a surety bond is required for loan brokers and originators in your state.
  3. Contact us to get a free quote and begin the application process for a mortgage broker bond.

Get bonded in your state

We provide surety bonds for mortgage brokers and loan originators in the following states: Arizona, Colorado, Connecticut, Delaware, Idaho, Illinois, Indiana, Kentucky, New Hampshire, New Mexico, New York, North Dakota, Ohio, Oregon, South Carolina, South Dakota, Vermont, Virginia, West Virginia, and Wyoming.

If you are ready to get a surety bond policy, or would like to learn more about the bond coverage required in your state, contact us!

What else should I know about the mortgage broker bond?

As with all surety bonds, the surety bond for mortgage brokers is a contract among three entities: the principal (your mortgage broker business), the obligee (the state regulating authority), and the surety (the company providing the bond). Should your company violate the terms of your mortgage broker license and damages are awarded, your surety will pay the affected party in the event that you become insolvent.  The surety company will still seek reimbursement from you for any losses paid on the claim.

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