Does a Mortgage Broker Need More Than One Bond?

A "for sale" sign is in front of a house. writes all surety bonds for the mortgage industry.

Use the NMLS to Keep Compliant

Most states require that a mortgage broker secure a surety bond not only in the state they operate the business from, but also in any state that they conduct business in.  If the main office is in California but the mortgage broker has clients in Oregon, Nevada and Washington, a surety bond will then be required for each state.

The licensing process for each state is generally done through the Nationwide Mortgage Licensing System (, otherwise known as the NMLS. The NMLS has an online application system where the mortgage broker can apply for a license for each state that is needed.  NMLS provides the licensing requirements by state, which can vary in scope and scale, and features checklists to guide the mortgage broker through the process.

For instance, California has a Residential Mortgage Lending Act that requires a minimum tangible net worth of $250,000 and a $50,000 surety bond.  In Oregon, the Mortgage Lender License requirement includes submitting financial statements but does not specify a minimum net worth and has a $50,000 surety bond.

In Washington, the Mortgage Broker License does not specify a minimum net worth, but has a $20,000 surety bond requirement with two bond options: one for those companies that employ their mortgage loan officers, and another version for those that hire independent contractor mortgage loan officers.

With complex rules for each state, let help you through the surety bond process and find the lowest surety bond rates available. – Your Online Bond Provider.

Great Rates. Solid Advice. Quick Solutions.

Leave a Reply

Your email address will not be published.