Overview
A mortgage lender bond is a surety bond that NMLS-licensed mortgage lenders post as a condition of licensing. It guarantees that the lender will comply with state mortgage law and handle borrower funds and disclosures honestly. A borrower or regulator harmed by a violation can claim against the bond up to its amount.
State regulators set the required amount, and it commonly scales with the lender's loan volume, so it differs from state to state. Because the bond guarantees compliance, underwriting reviews the owners' credit and the company's financial strength.
It is a surety bond that protects borrowers and the state. A paid claim is reimbursed to the surety by the lender under the indemnity agreement.
Who needs this bond
State-licensed mortgage lenders. Bond amount and renewal cadence are set by each state's regulator and filed via NMLS.
Typical amount and term
Bond amount usually 50,000 to 1,000,000 dollars depending on state and loan volume. Premium 1 to 3 percent of bond amount.
What this bond costs
Your premium is a small percentage of the bond amount, set by underwriting. The biggest drivers:
- The state-set bond amount (often volume-based)
- The owners' personal credit
- The company's financial statements and net worth
- License history and time in business
| Scenario | Bond amount | Estimated premium |
|---|---|---|
| Strong credit and financials | $50,000 bond | around 1 to 2 percent per year |
| Average profile | $100,000 bond | around 2 to 4 percent per year |
| Higher volume, tiered amount | $250,000 bond | rate declines at higher bond amounts for strong files |
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 Lender bond by the numbers
- US jurisdictions we track require a mortgage lender bond
- 52 of 52US jurisdictions we track require a mortgage lender bondSource: state statutes compiled in the Cornerstone bond cost index, data as of 2026-06-17. Mortgage Lender 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 Lender 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 Lender bond cost index
What you will need
- NMLS Unique Identifier
- Last 12 months of state-by-state funded loan volume
- Company financials and owner credit
How to apply
- Submit NMLS ID and target state list
- Carrier returns a per-state quote with surge brackets
- ESB signed in NMLS by the surety
How a surety bond differs from insurance
A mortgage lender bond is a surety guarantee that protects borrowers and the state, not the lender. Errors and omissions or other insurance protects the company's own balance sheet. The bond backstops compliance; insurance transfers the lender's own risk.
Frequently asked questions
What does a mortgage lender bond cover?
It guarantees compliance with state mortgage law and gives harmed borrowers and the regulator a way to recover up to the bond amount.
How is the bond amount set?
By each state's regulator through NMLS, frequently scaled to loan volume, so the required amount varies by state.
How much does it cost?
Premium is a percentage of the bond amount, lower for strong credit and financials. The examples here are illustrative, not a quote.
Do I post a bond in every licensed state?
Yes. Each state requires its own bond at the amount that state sets.
Mortgage Lender 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.