District of Columbia Mortgage Dual Authority Surety Bonds
The District of Columbia Department of Insurance, Securities and Banking Division also known as the Division administers through the National Mortgage Licensing System, the licensing of mortgage brokers, mortgage lenders and mortgage dual authority licenses. The District of Columbia Regulations Title 26-C defines the regulations for the licensing of those working in the mortgage industry.
Surety Bond Requirements:
A surety bond is required based on the total dollar volume of the loans written.
| Total Dollar Volume of Loans | Minimum Bond Required |
|---|---|
| $1,000,000 or less | $12,500 surety bond |
| More than $1,000,000 but less than $2,000,000 | $17,500 surety bond |
| More than $2,000,000 but less than $3,000,000 | $25,000 surety bond |
| More than $3,000,000 | $50,000 surety bond |
Businesses that have multiple locations are required to submit an application for each location. The Division may approve a blanket surety bond in the amount of $200,000 instead of single bonds to meet the surety bond requirement. The name of the principal (applicant) must match exactly as the full legal name of the applicant.
License Requirements:
- Prior to applying for a license, all educational requirements must be met and all examinations passed.
- Complete the required mortgage dual authority license application found on the National Mortgage Licensing System (NMLS) and pay the applicable credit report fee, NMLS processing fee, and FBI Criminal Background Check Fee.
- For applicants with previous District of Columbia mortgage broker activity, provide details on the type of activity, transactions, dollar volume, time period and any other pertinent information.
- Each business location requires a separate license and surety bond.
- Provide formation documentation such as a Corporate Charter, Articles of Incorporation, Articles of Organization, Partnership Agreement, or Operating Agreement, if applicable.
- Provide an unaudited financial statement that are dated within 90 days of the application and for the previous two years prepared by a CPA. Financial statements include a income statement, statement of cash flows, balance sheet and notes, if any. For a start-up business, an initial balance sheet is required. Applicants must maintain a minimum of $225,000 in net worth per licensed location.
- Obtain a Certificate of Registration from the District of Columbia Department of Consumer and Regulatory Affairs(DCRA).
- Applicants using a dba or trade name must be register the name with DCRA.
- A credit report must be obtained for each person of control of the business and they must complete the Identity Verification Process (IDV).
How Much Will This Bond Cost?
The premium that you pay for a District of Columbia Mortgage Dual Authority Surety Bond is dependent on credit and bond amount 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?
The District of Columbia mortgage broker license must be renewed by December 31 each year.
Related Links:
NMLS Application PortalNMLS District of Columbia Mortgage Dual Authority License
NMLS Registration Portal
District of Columbia Information for Mortgage Lenders, Brokers and Loan Originators
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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