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Does a Maryland Affiliated Insurance Producer Mortgage Loan Originator Need a Bond?

A

The State of Maryland, Department of Labor, Office of the Commissioner of Financial Regulation, through the National Mortgage Licensing System (NMLS), is tasked with the licensing of mortgage lenders, mortgage brokers, mortgage servicers and affiliated insurance producer mortgage loan originators.

The Code of Maryland Regulation Citation 09.03.06.09, defines the licensing of affiliated insurance producer- mortgage loan originators.

License requirements are as follows:

1. Complete education and pass the examination.
2. Complete the application through the NMLS system and pay the applicable filing fee, license fee, credit report fee, and Criminal Background Check fee.
3. Complete the authorization of a FBI criminal background check and a credit report check. If any negative criminal history is found in the background check, provide a document of explanation.
4. If applicant answers Yes to any of the Disclosure Questions, provide complete details and any applicable documents.
5. Complete the affidavit of previous Maryland mortgage loan originator history.
6. Provide a Certificate of Authority or a Good Standing Certificate issued by the Maryland.
7. Provide a sponsorship certificate signed by a person in control of the employing entity.
8. A surety bond will be required based on the volume of loans for the past 12 months, or if the applicant is covered under a blanket surety bond, the bond amount required is $1,000,000 and must be held by the financial institution or mortgage lender licensee.

Volume of Loans in the Past 12 MonthsMinimum Surety Bond Amount
Under $3,000,000$50,000
$3,000,000 - $10,000,000$100,000
Over $10,000,000$150,000

To determine the bond amount, complete a Volume of Mortgage Business statement that declares the volume of mortgage business for the previous 12 months. If the applicant has not conducted any mortgage business in the past 36 months, note this on the statement.

How Much Will This Bond Cost?

The premium that you pay for a Maryland Affiliated Insurance Producer - Mortgage Loan Originator Surety Bond is dependent on credit and the bond amount required. For bond amounts over $50,000, personal and business financial statements will be required.

Did You Know?

The State of Maryland requires mortgage loan originator licenses must be renewed by December 31 of each year.

Related Links:

Maryland License Application Information
NMLS - Federal Registry Resource
NMLS - Maryland Affiliated Insurance Producer - Mortgage Loan Originator


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