Overview
A mortgage banker bond is a surety bond that NMLS-licensed mortgage bankers post as a condition of their state license. It guarantees that the company will follow the mortgage lending laws of the state and deal honestly with borrowers. If the company breaks the rules and causes a borrower or the state a loss, a claim can be made against the bond.
The required bond amount is set by each state's regulator and commonly scales with loan volume, so it varies widely from state to state. Because the bond guarantees compliance rather than insuring the company, underwriting centers on the owners' credit and the company's financial standing.
It is a surety bond, so it protects borrowers and regulators, not the licensee. A paid claim must be reimbursed to the surety under the indemnity agreement.
Who needs this bond
Licensed mortgage bankers in every state that participates in NMLS ESB (most do). Required at initial licensing and at every annual renewal.
Typical amount and term
Bond amount varies by state and origination volume, typically 25,000 to 500,000 dollars. Premium 1 to 3 percent of bond amount for well-qualified entities.
What this bond costs
Your premium is a small percentage of the bond amount, set by underwriting. The biggest drivers:
- The bond amount the state sets (often tied to loan volume)
- The owners' personal credit
- The company's financial statements
- Time in business and license history
| Scenario | Bond amount | Estimated premium |
|---|---|---|
| Strong credit | $25,000 bond | around 1 to 3 percent per year |
| Average credit | $50,000 bond | around 3 to 5 percent per year |
| Credit challenges | $100,000 bond | higher rate, with secured options available |
Figures are illustrative premium ranges, not quotes or statutory amounts. Your rate depends on the bond amount your obligee requires and your underwriting profile.
Mortgage Banker bond by the numbers
- US jurisdictions we track require a mortgage banker bond
- 52 of 52US jurisdictions we track require a mortgage banker bondSource: state statutes compiled in the Cornerstone bond cost index, data as of 2026-06-17. Mortgage Banker bond cost index
- statutory bond amounts across the 52 states that publish one
- $10,000 to $50,000statutory bond amounts across the 52 states that publish oneSource: state statutes compiled in the Cornerstone bond cost index, data as of 2026-06-17. Mortgage Banker bond cost index
- median statutory bond amount across those states
- $10,000median statutory bond amount across those statesSource: state statutes compiled in the Cornerstone bond cost index, data as of 2026-06-17. Mortgage Banker bond cost index
What you will need
- NMLS Unique Identifier for the company
- State of licensure and current origination volume
- Company financials, owner personal credit
How to apply
- Provide NMLS ID and target state list
- Receive a per-state quote within one business day
- Bond signed in NMLS by surety; you file electronically at renewal
How a surety bond differs from insurance
A mortgage banker bond is a surety bond that protects borrowers and the state, not your company. Errors and omissions insurance, by contrast, protects your business against claims of professional mistakes. The bond guarantees compliance; the policy covers your own liability.
Frequently asked questions
What does a mortgage banker bond guarantee?
It guarantees that the licensee will comply with state mortgage law and deal honestly with borrowers, and it gives harmed parties a way to recover up to the bond amount.
How is the bond amount set?
Each state's regulator sets the amount through NMLS, and many states scale it with loan volume. Amounts vary widely, so the requirement is state-specific.
How much is the premium?
Premium is a percentage of the bond amount, typically low single digits for strong credit and higher for weaker credit. The figures here are illustrative.
Can I get bonded with poor credit?
Usually yes. The rate is higher, and some cases use a secured or collateralized option, but bonding is generally available.
Do I need a separate bond for each state?
Yes. Each state where you are licensed posts its own bond at the amount that state sets.
Mortgage Banker bond requirements by state
The figures below are the ones that actually differ from state to state. Everything else about this bond, who needs it, what underwriting looks at, and how it is filed, is the same everywhere and is covered above.
The published renewal fee is $300 to $800 in every state that charges one.
In every state that requires the bond, it renews annually alongside the underlying license.
| State | Bond amount | Regulator |
|---|---|---|
| Alabama | $10,000 | Alabama State Banking Department |
| Alaska | $10,000 | Alaska Division of Banking & Securities |
| Arizona | $10,000 | Arizona Department of Financial Institutions |
| Arkansas | $10,000 | Arkansas Securities Department |
| California | $50,000 | California DFPI |
| Colorado | $10,000 | Colorado Division of Real Estate |
| Connecticut | $25,000 | Connecticut Department of Banking |
| Delaware | $10,000 | Delaware Office of the State Bank Commissioner |
| District of Columbia | $10,000 | DC Department of Insurance, Securities and Banking |
| Florida | $50,000 | Florida Office of Financial Regulation |
| Georgia | $10,000 | Georgia Department of Banking and Finance |
| Hawaii | $10,000 | Hawaii DCCA |
| Idaho | $10,000 | Idaho Department of Finance |
| Illinois | $50,000 | Illinois DFPR |
| Indiana | $10,000 | Indiana DFI |
| Iowa | $10,000 | Iowa Division of Banking |
| Kansas | $10,000 | Kansas OSBC |
| Kentucky | $10,000 | Kentucky DFI |
| Louisiana | $10,000 | Louisiana OFI |
| Maine | $10,000 | Maine Bureau of Consumer Credit Protection |
| Maryland | $10,000 | Maryland DLLR |
| Massachusetts | $25,000 | Massachusetts Division of Banks |
| Michigan | $10,000 | Michigan DIFS |
| Minnesota | $10,000 | Minnesota Department of Commerce |
| Mississippi | $10,000 | Mississippi Department of Banking |
| Missouri | $10,000 | Missouri Division of Finance |
| Montana | $10,000 | Montana Division of Banking and Financial Institutions |
| Nebraska | $10,000 | Nebraska Department of Banking and Finance |
| Nevada | $25,000 | Nevada Division of Mortgage Lending |
| New Hampshire | $10,000 | New Hampshire Banking Department |
| New Jersey | $10,000 | New Jersey Department of Banking and Insurance |
| New Mexico | $10,000 | New Mexico Regulation and Licensing |
| New York | $50,000 | New York DFS |
| North Carolina | $10,000 | North Carolina Commissioner of Banks |
| North Dakota | $10,000 | North Dakota Department of Financial Institutions |
| Ohio | $25,000 | Ohio Division of Financial Institutions |
| Oklahoma | $10,000 | Oklahoma Department of Consumer Credit |
| Oregon | $10,000 | Oregon Division of Financial Regulation |
| Pennsylvania | $10,000 | Pennsylvania Department of Banking and Securities |
| Puerto Rico | $10,000 | Puerto Rico OCIF |
| Rhode Island | $10,000 | Rhode Island Division of Banking |
| South Carolina | $10,000 | South Carolina Board of Financial Institutions |
| South Dakota | $10,000 | South Dakota Division of Banking |
| Tennessee | $10,000 | Tennessee Department of Financial Institutions |
| Texas | $50,000 | Texas SML (Savings and Mortgage Lending) |
| Utah | $10,000 | Utah DFI |
| Vermont | $10,000 | Vermont DFR |
| Virginia | $10,000 | Virginia Bureau of Financial Institutions |
| Washington | $10,000 | Washington DFI |
| West Virginia | $10,000 | West Virginia Division of Financial Institutions |
| Wisconsin | $10,000 | Wisconsin Department of Financial Institutions |
| Wyoming | $10,000 | Wyoming Division of Banking |
State figures last verified August 3, 2026.
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The complete compliance picture
The financial services and lenders stack
Lenders, mortgage originators, and money services businesses carry three layers of compliance at once: the state license that lets them operate, the surety bond a regulator may require to hold the license, and the insurance program that covers the operation. Here is how the three fit together.
Reviewed by the Cornerstone Surety bond team. Last reviewed 2026-06-17. Last verified June 17, 2026.