DC Mortgage Lender Surety Bonds
The District of Columbia Department of Insurance, Securities and Banking Division (Division) administers through the National Mortgage Licensing System, the licensing of mortgage lenders.
The District of Columbia Regulations Title 26-C defines the regulations for mortgage lenders. Mortgage lenders must obtain a license and surety bond prior to offering any mortgage related services. The surety bond ensures compliance of state laws and honest and ethical business practices.
License Requirements:
- Complete all pre-licensing education and take and pass the written examinations.
- Complete the required mortgage lender license application found on the National Mortgage Licensing System (NMLS) and pay the applicable processing fee, credit report fee, FBI Criminal Background Check Fee.
- Each business location requires a separate license and a surety bond.
- Provide formation documentation such as a Partnership Agreement, Articles of Incorporation, Corporate Charter, Articles of Organization and Operating Agreement if applicable.
- A credit report must be obtained for each person of control of the business and they must complete the Identity Verification Process (IDV).
- Provide an unaudited financial statement that is dated within 90 days of the application and for the previous two years prepared by a CPA. Financial statements include a balance sheet , income statement, statement of cash flows and notes, if any. For new businesses, an initial balance sheet is required. Applicants must maintain a minimum of $200,000 in net worth per licensed location.
- Obtain a Certificate of Registration from the District of Columbia Office of Tax and Revenue.
- Applicants that plan to use a trade name or dba must first register with DCRA.
- 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.
Surety Bond Requirements:
Obtain a surety bond 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 |
If the applicant has multiple licensed business locations, the Division may approve a blanket surety bond in the amount of $200,000. The name used on the license application must match exactly the name to be entered on the surety bond.
What Does This Bond Cost?
The premium you pay for a District of Columbia Mortgage Lender License Surety Bond is based 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?
Bonds obtained January 1 through March 31- Bond expiration date should be March 31 of the following year. April 1 through June 30 - Bond expiration date should be June 30 of the following year. July 1 through September 30 - Bond expiration date should be September 30 of the following year. October 1 through December 31 - Bond expiration date should be December 31 of the following year.
Related Links:
DC Mortgage Lender Annual Report AffidavitNMLS District of Columbia Mortgage Lender License New Application Checklist
DC Mortgage Lender License 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, call us first. 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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