California Mortgage Broker Bonds
The California Department of Corporations requires a minimum of a $50,000 Residential Mortgage Servicer surety bond and also a CA Residential Mortgage Lender bond for those providing mortgages in California. The bond amount, or penalty, is based on the aggregate amount of mortgage loans originated.
(as of 2011, but verify with CA Department of Corporations)
Loan Volume $0 – $50,000,000 requires a $50,000 bond
Loan Volume $50,000,001 – $500,000,000 requires a $100,000 bond
Loan Volume $500,000,001 + requires a $200,000 bond
CA Residential Mortgage Servicer bonds and and the CA Residential Lender bonds must be provided on an original surety bond form MBL 50205 (2/01), and executed by a surety company authorized to conduct business in California. The name of the principal insured on the 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 CA Residential 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.
A license can be issued as a residential mortgage lender, a residential mortgage loan servicer or both residential mortgage lender and residential mortgage loan servicer.
CA Mortgage Broker 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 bond and/or CA Mortgage Servicer bond.
You will find our staff at NFP Surety & Insurance very helpful in providing one or both of these surety bonds. Please call (800) 863-3210. or complete our online application to obtain this bond.
You may also get additional information by going to: http://www.corp.ca.gov/OLP/pdf/rm/1608-C.pdf