Pennsylvania's Department of Banking and Securities licenses and regulates financial services businesses in the state, plus enforces compliance with state and federal laws. One of the industries regulated by the Department is Mortgage Services.
In 2017, Pennsylvania passed Senate Bill 751, which requires all mortgage servicers in the state to be licensed and to obtain a surety bond. A surety bond protects consumers from harmful actions by a mortgage servicer.
License applications are accepted in the NMLS. Licenses renew yearly by June 30.
A mortgage servicer is a company that directly or indirectly services a mortgage loan. A borrower pays their mortgage loan payments to a mortgage servicer. The servicer can be the originator of the loan or a company that purchased the servicing rights from the original mortgage lender.
Pennsylvania's Department of Banking and Securities is the obligee that requires a surety bond for mortgage servicers. The surety bond must be in an amount of $500,000.
A fidelity bond is required in an amount that meets the guidelines for Freddie Mac and Fannie Mae.
A separate license is required for each location where servicing activities are conducted.
Required fees include:
Activities authorized to be conducted with a mortgage servicer license include:
The premium that you pay for a Pennsylvania Mortgage Servicer Surety & Fidelity Bond is based on credit, the bond amount required, and business and personal financial statements. Premiums start at .75% of the surety bond amount with good credit. Fidelity amounts vary on the number of employees. Contact our Surety Bond Specialists for a free quote that fits your specific situation.
Applications for a Pennsylvania Mortgage Servicer are made through the NMLS Website
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.
For a downloadable application