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California Finance Lender Surety Bonds


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The California Department of Business Oversight, Financial Services Division is tasked with the oversight of licensure and regulations of finance lenders, payday lenders, escrow agents and escrow companies, mortgage servicers, mortgage and other non-bank lenders and other financial service providers.

A California Finance Lender (CFL) is defined as anyone that makes consumer or commercial loans. A finance broker is defined as a person that negotiates or performs an act in connection with loans made by a finance lender.

Section 22100 of the California Financial Code defines the license requirements which includes a minimum net worth of at least $25,000 and requires a minimum surety bond of $25,000. None of the principals of the company can have a criminal history and must have a history of regulatory compliance.

Surety Bond Requirements:

California Finance Lender Licensees who originate mortgage loans are also required to keep a minimum $25,000 surety bond. The bond amount is based on the amount of activities conducted by the licensee. The surety bond amount will be based on the aggregate dollar amount of residential mortgage loans originated by the licensee in the preceding calendar year, as follows:

Aggregate LoansBond Amount
0 - $1,000,000$ 25,000 Surety Bond
$1,000,001 - $50,000,000$ 50,000 Surety Bond
$50,000,001 - $500,000,000$100,000 Surety Bond
Over $500,000,001$200,000 Surety Bond

Surety bonding requirements for CFL licensees who do not originate residential mortgage loans will remain $25,000.

License Requirements:

  1. Complete the application through the NMLS system and pay the applicable filing fee.
  2. Submit the checklist along with agency-specific requirement attachments to the Department of Business Oversight NMLS Licensing Unit within five business days.
  3. Provide copies of the following if applicable: a Certificate of Filing from the county clerk in which the fictitious business name was filed, if any questions answered “Yes” on the disclosure statement, provide supporting documents, Certificate of Authority or Good Standing Certificate obtained from the California Secretary of State, partnership agreement, and an organizational chart if owned by another entity, entities, or persons, subsidiaries, or affiliated entities.
  4. Provide an unaudited financial statement within 90 days of the date of application. The financial statement must reflect a minimum real net worth of $250,000, unless licensed as a broker, then the requirement is $50,000.
  5. Provide a Business Plan as to how business will be conducted.
  6. Provide a Management Chart that includes offices, managers, and divisions.
  7. Submit fingerprint cards for each control person filing an NMLS individual form.
  8. Complete the Attestation by an authorized person for the company.
  9. Complete the Customer Authorization of Disclosure of Financial Records form. If executed in a state other than California, the form must be notarized.
  10. Complete the Execution Section by an authorized person for the company.

How Much Does This Bond Cost?

The premium you pay for a California Finance Lender Surety Bond is dependent on credit and the bond amount required. Our rates start at .75% of the bond amount with good credit. Contact our Surety Bond Specialists for a free quote that fits your situation.

Did You Know?

Finance lenders in California can write either secured or unsecured loans. Secured loans can be secured with personal property. If the loan is more than $5,000, it can be secured with a combination of personal and real property or by real property alone.

Related Links:

California Finance Lenders License - FAQs
NMLS Registration Portal
California Request for Live Scan Service
California Finance Lenders Law License - New Application Checklist
State of California - Finance Lenders Law - Plan of Business
State of California -Instructions for Customer Authorization for Disclosure of Financial Records Form
California Finance Lenders Law - Licensee Information

More Surety Bond Questions?

Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.


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