California Finance Lender or Broker Bond
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How much does a finance loan broker bond cost in California?
The California Department of Business Oversight requires finance lenders and brokers to post $25,000 surety bonds prior to conducting business.
These bonds are subject to underwriting consideration, so a review of your personal credit report determines the exact price you’ll pay. Qualified applicants could pay as low as $250. Request your free bond quote now!
We can provide your free bond quote within 1 business day of submitting your application. Call 1 (800) 308-4358 or click here to get started!
Why do I need this bond?
By posting a California finance lender or broker bond, principals (finance lenders/brokers) and their agents and employees pledge to conduct business according to the provisions of the California Finance Lenders Law and all rules and regulations made by the Commissioner of Business Oversight. Specifically, these bonds ensure that principals faithfully apply all funds received while on the job.
These bonds protect any person who sustains injury or financial loss as a result of the principal’s unlawful business practices. The principal must reimburse the surety for all damages paid out.
Purchasing the California surety bond you need is fast and easy when you work with the experts at SuretyBonds.com. Apply now!
What’s the fine print?
Finance lender or broker surety bonds in California can be canceled by the surety according to the provisions of Sections 996.320 and 996.330 of the California Code of Civil Procedure. The effective date of the bond must be indicated on the surety bond form.
All of the signatures required on the bond form must be acknowledged by a notary public.
How to become a finance lender or broker in California
Finance lenders and brokers must obtain a finance lenders license before conducting business in California. The licensing requirements depend on whether the company performs residential lending or brokering services. If the company acts as a broker for residential loans, applicants must do the following:
- Obtain a surety bond
- Provide proof of no criminal history of dishonesty, fraud or deceit
- Have a plan of business consistent with the business of financial lender
- Pay the $100 investigation fee and $200 application fee
- Have an application approved through the Nationwide Mortgage Licensing System
For companies that are not involved in residential loan services, applicants must do the following:
- Obtain a surety bond
- Provide proof no criminal history of dishonesty, fraud or deceit
- Have a plan of business consistent with the business of financial lender
- Pay the $100 investigation fee and $200 application fee
- Submit an application from the California Department of Business Oversight to its Los Angeles location
Even after the license application is approved and issued, the licensee must meet several additional requirements. Each licensee must file an annual report by March 15 of each year. The Department of Business Oversight determines on or before September 30 of each year how much the licensee owes for license renewal. The minimum renewal fee is $250 per licensed location, and it must be paid by October 31.
More licensing information can be accessed from the Additional Resources section of this page.
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Additional Resources
California Department of Business Oversight California Finance Lenders Law
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