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Do Mortgage Servicers in Connecticut Need to Have a Surety Bond?


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.

The requirements for licensing include:

1. Complete all pre-licensing education and take the written examinations.
2. Completion of the required licensing (MU4) through the National Mortgage Licensing System (NMLS) and pay the applicable processing fee, credit report fee, FBI Criminal Background Check Fee, State Criminal Background Check Fee, and the Connecticut License fee.
3. Indicate on the application any trade names or dba’s that will be used.
4. Indicate on the application the Resident Agent.
5. An onsite manager or qualifying individual is required and must have the following: must be licensed as a mortgage loan originator with 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.
6. Provide a balance sheet that is not more than 12 months old and must reflect a tangible net worth.
7. Complete the Work Experience Form .
8. 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.
9. 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

10. Provide Formation Documentation such as a Corporate Charter or Articles of Incorporation, Partnership Agreement, or Articles of Organization and Operating Agreement if applicable.
11. If applicant answers "Yes" to any of the Disclosure Questions, provide complete details and any applicable documents.
12. Obtain a certificate of authority from the Connecticut Secretary of State.
13. Obtain Errors and Omissions coverage and upload a copy of the policy. Coverage must match the bond amount required.

How Much Will This 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.

The premium that you pay for a Fidelity Bond for a Mortgage Servicer is based on the number of employees and the amount of the bond required.

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

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