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California Mortgage Servicer Surety Bond


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

A mortgage loan originator is any person that receives compensation or gain for a residential mortgage application, offer, or negotiates terms of a residential mortgage loan.

The California Residential Mortgage Lending Act (CRMLA) Division 9 of the California Financial Code, Article 3, Section 22100 defines the licensing of mortgage loan originators, which includes mortgage servicers.

Surety and Fidelity Bond Requirements:

Obtain a fidelity bond (for employee theft or dishonesty) and submit a copy of the policy with the application.
Obtain a $50,000 mortgage servicer surety bond.

License Requirements:

  1. Print and submit a copy of the Checklist along with agency specific requirement attachments to the Department of Business Oversight NMLS Licensing Unit within five business days.
  2. Complete the application through the NMLS system and pay the applicable filing fee.
  3. Provide copies of the following if applicable: a Certificate of Filing from the county clerk in which the fictitious business name was filed, provide any documents and an explanations for any of the disclosure statements that were answered with "yes," provide a Good Standing Certificate or Certificate of Authority obtained from the California Secretary of State, copies of partnership agreements, an organizational chart if owned by another person, entity, entities, subsidiaries, or affiliated entities, explain any other business activities.
  4. Submit fingerprint cards for each control person filing an NMLS individual form.
  5. Complete the Customer Authorization of Disclosure of Financial Records form. If executed in a state other than California, the form must be notarized.
  6. Provide evidence of a minimum tangible business net worth of $250,000 through an audited financial statement prepared by a CPA, as of the company’s most recent fiscal year end or a more recent date.
  7. Provide a Business Plan as to how business will be conducted. If applicant is a residential mortgage loan servicer, include a mitigation program in the event of a loss.
  8. Provide a Management Chart that includes mangers, offices, and divisions.
  9. Provide evidence of federal agency approval to engage in business of loans for Freddie Mac, Fannie or Ginnie Mae, FHA, VA, or Farmers Home Administration.

How Much Will This Bond Cost?

The premium that you pay for a California Mortgage Lender Surety Bond is dependent on credit. The premium that you pay for a Fidelity Bond is dependent on the number of employees covered, bond amount and the number of years of coverage. Premiums start at .75% of the bond amount with good credit. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

Did You Know?

California mortgage servicer licenses must be renewed annually by December 31.

Related Links:

California Department of Business Oversight - Mortgage Loan Originators - What's New for Licensees
NMLS Registration Portal
California Residential Mortgage Lending Act - Licensee Information
NMLS - California Residential Mortgage Lending Act
California Finance Lenders Law - Plan of Business
California - Customer Authorization for Disclosure of Financial Records
State of California - Department of Business Oversight - Form
California Finance Lenders Law

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.


For a downloadable application