The Nationwide Multistate Licensing System (NMLS) is getting rid of the paper surety bond that has traditionally been required and will go electronic. The electronic surety bond (ESB), which will be introduced on September 12, 2016, will allow NMLS to receive and track bonds online.
What states are using the electronic surety bond?
Nine states have announced they will use the electronic surety bond, including Idaho, Indiana, Iowa, Massachusetts, Texas, Vermont, Washington, Wisconsin and Wyoming. There is no reason the remaining states won’t adopt the ESB because it will make it easy for all parties involved. It is unclear when the other 42 states will move online, though.
What is changing?
In years past, the bond was usually uploaded by the applicant, printed off and sent to the state for filing. The ESB will allow the bond document to be stored online. It will also be received and tracked online. Some surety companies will be registered with NMLS and the surety bonds will be stored for the appropriate people to view. NMLS hopes the bonds will be able to be tracked and managed all online in the future.
If you have any questions about ESB you can contact NMLS here. They also have a training webinar explaining this new move to ESB. To learn more about mortgage broker bonds, please visit our dedicated page or get in touch with a SuretyBonds.com Account Manager today if you need to get bonded as a broker.