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Connecticut Mortgage Servicer Surety Bond


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The State of Connecticut Department of Banking administers the licensing of Mortgage Servicers, mortgage brokers, mortgage lenders and mortgage correspondent lenders through the National Mortgage Licensing System (NMLS).

Connecticut Statutes Chapter 36a Section 671 – 671d defines the requirements for the mortgage broker and mortgage lender regulations. Mortgage servicers are required to have a license, surety bond and fidelity bond prior to providing mortgage related services. The surety and fidelty bond ensures compliance of state laws and honest and ethical performance of duties.

Surety and Fidelity Bond Requirements:

  1. A minimum $100,000 surety bond is required for licensure. The bond covers the main office and an addendum is required for any branch offices and requires an additional $100,000 surety bond. The name of the principal (applicant) must match exactly as the full legal name of the applicant.
  2. A minimum of $300,000 fidelity bond or in the amount as follows:

    Principal Amount RequiredAmount of Residential Mortgage Loans Serviced
    $300,000 Fidelity Bond$100 million or less
    Plus .15%Of the next $400 million
    Plus .125%Of the next $500 million

License Requirements:

  1. Complete all pre-licensing education and take the written examinations.
  2. Complete the required mortgage servicer license application (MU4) found on the National Mortgage Licensing System (NMLS) and pay the applicable FBI Criminal Background Check Fee, State Criminal Background Check Fee, credit report fee, NMLS processing fee and the Connecticut license fee.
  3. List the Resident Agent on the application.
  4. Provide the name of an onsite manager or qualifying individual. The person listed is required to have the following: be licensed as a mortgage loan originator in Connecticut, be physically in the main office location, have worked in the mortgage business industry for a minimum of three of the last five years.
  5. Provide a balance sheet was prepared no more than 12 months prior to the license application date. The balance sheet will need to show a tangible net worth.
  6. Provide any trade names or dba’s that will be used.
  7. Complete the Work Experience Form.
  8. Obtain a certificate of authority from the Connecticut Secretary of State.
  9. Obtain Errors and Omissions (E&O) coverage and upload a copy of the policy. E&O coverage must match the bond amount required.
  10. Provide a copy of the business formation documentation (if applicable) such as a Partnership Agreement, Corporate Charter or Articles of Incorporation, or Articles of Organization and Operating Agreement.
  11. If any of the disclosure questions were answered "Yes", provide an explanation for each and provide any supporting documentation if necessary.

How Much Will a Mortgage Servicer Bond Cost?

The premium that you pay for a Connecticut Mortgage Servicer Surety Bond is dependent on credit and business and personal financial statements and the number of surety bonds required. 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?

Connecticut does not limit the number of dba’s used.

Related Links:

Financial Statement
NMLS Registration Portal
NMLS - Connecticut Mortgage Servicer License - New Application Checklist
Connecticut Department of Banking - Mortgage Broker Licensing

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