Overview
A mortgage servicer bond is a surety bond that NMLS-licensed servicers post to collect payments, manage escrow, and administer residential mortgage loans under a state license. It guarantees that the servicer will follow state servicing law and handle borrower funds properly. Borrowers or the regulator can claim against the bond if a violation causes a loss.
State regulators set the required amount, which commonly scales with the unpaid principal balance the servicer manages, so it varies widely. Because the bond guarantees compliance, underwriting looks at company financials, capitalization, and owner credit.
It is a surety bond that protects borrowers and the state. The servicer reimburses the surety for any paid claim under the indemnity agreement.
Who needs this bond
Licensed mortgage servicers in states that require an ESB at licensing or renewal. Bond amount typically scales with portfolio UPB.
Typical amount and term
Bond amount usually 100,000 to 1,000,000 dollars depending on state and serviced UPB. Premium 1 to 2 percent of bond amount for well-capitalized servicers.
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 tied to serviced unpaid principal balance)
- The company's capitalization and financial statements
- The owners' credit
- Servicing volume by state
| Scenario | Bond amount | Estimated premium |
|---|---|---|
| Well-capitalized servicer | $100,000 bond | around 1 to 2 percent per year |
| Mid-size servicer | $250,000 bond | around 1.5 to 3 percent per year |
| Large portfolio, tiered amount | $1,000,000 bond | rate declines at higher 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 Servicer bond by the numbers
- US jurisdictions we track require a mortgage servicer bond
- 52 of 52US jurisdictions we track require a mortgage servicer bondSource: state statutes compiled in the Cornerstone bond cost index, data as of 2026-06-17. Mortgage Servicer 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 Servicer 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 Servicer bond cost index
What you will need
- NMLS Unique Identifier
- Serviced UPB by state
- Company financials and owner credit
How to apply
- Send NMLS ID and serviced UPB by state
- Carrier returns a per-state quote with tiered pricing
- ESB signed in NMLS by the surety
How a surety bond differs from insurance
A mortgage servicer bond is a surety guarantee that protects borrowers and the state. It is not insurance on the servicer's own losses. The bond backstops compliant handling of borrower payments and escrow; separate insurance covers the company's own exposures.
Frequently asked questions
Who needs a mortgage servicer bond?
Licensed mortgage servicers in states that require a surety bond at licensing or renewal, with the amount usually scaled to serviced balances.
How is the bond amount calculated?
By each state's regulator, frequently based on the unpaid principal balance serviced in that state, so the required amount varies.
What does the premium depend on?
Mainly the bond amount, the company's capitalization, and owner credit. Strong files earn lower rates.
Do servicers post a bond in each state?
Yes. Each licensing state requires its own bond at the amount that state sets.
Mortgage Servicer 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.