CA Residential Mortgage Lender Bonds
The California Department of Corporations requires a CA Residential Mortgage Lender surety bond and/or a CA Mortgage Servicer bond for those in the business of providing residential mortgages. The bond amount, or penalty, is based on the aggregate amount of mortgage loans originated.
CA Residential Mortgage Lender Bonds and/or Servicer Bonds must be prepared on an original surety bond form MBL 50205 (2/01), that has been executed by a surety company authorized to conduct business in the State of California. The name of the principal insured on the CA Mortgage Broker bond must match exactly the full legal name of applicant as approved by California Secretary of State.
The purpose of the CA Residential Mortgage Lender Bond and/or Mortgage Servicer surety bond in California is for the recovery of expenses, fines, and fees levied by Commissioner or for losses or damages incurred by borrowers or consumers as the result of a licensee’s noncompliance with the law.
CA Mortgage Servicer Bonds
Any person or company that engages in the business of making residential mortgage loans or servicing residential mortgage loans for California borrowers is required to obtain the proper license and CA Mortgage Lender and/or Servicer bond.
For more information, feel free to give our agency a call at (800) 863-3210, or go to the website http://www.corp.ca.gov/OLP/pdf/rm/1608-C.pdf.