Residential Mortgage lender surety bond cost
California’s Department of Business Oversight requires residential mortgage lenders and services to post $50,000 surety bonds.These bonds are subject to underwriting consideration, so the price you’ll pay depends on a review of your personal credit report. Some surety underwriting companies might require additional business financials and a current financial statement, so having these documents handy could expedite the bonding process.
Request your free surety bond quote now!Contact one of our surety specialists to receive a free, personalized bond quote within 1 business day of applying. Call 888.610.4474, or click here, to begin the bonding process.
Why this bond
By posting a California residential mortgage lender and/or Servicer surety bond, principals (lenders and/or services) and their agents and employees agree to abide by the provisions of the California Residential Mortgage Lending Act and all of the rules and regulations made by the Commissioner of Business Oversight of the State of California. Specifically, principals pledge to apply all funds received during lending/servicing transactions.
For a complete list of prohibited actions under this bond, check out the California Code Section 5024, which can be accessed from the Additional information section of this page.
If the principal fails to comply with the terms of the surety bond contract and the letter of the law, the surety will protect the state and any person who suffers financial loss as a result up to the full amount of the bond. The principal must reimburse the surety for any money paid out.
Residential mortgage lender and/or Servicer bond details
Residential mortgage lender and/or service surety bonds in California can be canceled by the surety in accordance with the provisions of Sections 996.320 and 996.330 of the Code of Civil Procedure of the State of California.
Become a residential mortgage lender or Servicer
Before being able to provide services, residential mortgage lenders and services in California must apply for and receive a Residential Mortgage Lending Act license. Applicants must submit a request to the Nationwide Mortgage Licensing System and Registry. The commissioner issues the applicant a license if the following conditions are satisfied:
- Complete application submitted with background and experience disclosures
- $1,100 non-refundable licensing fee filed
- Findings of sufficient financial responsibility, good character and necessary experience
- Findings to support the notion the applicant will operate business honestly and fairly
- And more
For a complete step-by-step guide on how to apply for a Residential Mortgage Lending Act license in CALIFORNIA, see the Quick Guide for Submitting a Complete Company Form in the Additional information section of this page.
Apply for your surety bond
Get a FREE Residential Mortgage Lender and/or Servicer Bond Quote Today! Click here to begin