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California Finance Lender or Broker Bond

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How much does a California finance lender and finance broker bond cost? 

California finance lender and finance broker bond costs start at $250 annually. Your personal California bond premium will be provided after a quick application review.

How do you get a finance lender or broker bond in California?

You can apply for your California finance lender or broker bond online 24/7. Simply provide the following information for Department of Financial Protection and Innovation and NMLS filing approval.

  • name
  • address
  • NMLS id
  • line of business (commercial loans or consumer loans) 

Once your order has been processed, SuretyBonds.com will file your California surety bond directly with NMLS.

How fast can I get a finance lender or broker surety bond?

Our industry-leading technology and responsive customer service team allow us to file your official California finance lender or broker bond directly with the NMLS faster than any other surety provider. Orders placed by 4 PM CST Monday-Friday are typically processed and filed same-day.

If you have questions about the California finance lender/broker bond or your application, call 1(800)308-4358 to speak with a friendly surety expert. We're here to guide you through the mortgage bond process so you can get back to running your business.

Bond Type
$25,000Finance Lender or Broker BondAggregate Loans: $0 - $1,000,000; licensees who do not originate residential mortgage loans
$50,000Finance Lender or Broker BondAggregate Loans: $1,000,001 - $50,000,000
$100,000Finance Lender or Broker BondAggregate Loans: $50,000,001 - $500,000,000
$200,000Finance Lender or Broker BondAggregate Loans: $500,000,001+

What is a California finance lender and finance broker bond?

California Financial Code Section 22112 requires individuals file a minimum $25,000 surety bond amount when applying for a state finance lender or finance broker license. The state's official form is titled the “Bond of Finance Lender and/or Broker Financial Code Section 22112” but is commonly known as “California finance lender or broker bond,” “California finance broker bond,” or “California finance lender bond.” California finance lenders law specifically requires this bond be used to provide financial protection to borrowers or consumers to recover expenses, fines, or levies for damages or losses resulting from a licensee's noncompliance.

Why do I need a surety bond to be a finance lender or finance broker?

You must purchase and file a surety bond before receiving your California state finance broker license or finance lender license. By filing this bond you agree to follow California Financing Law when providing lending activity services in the state. If you fail to do so, your issuing surety company will pay valid claims to harmed individuals up to your full bond amount, which you must reimburse. 

California Financial Code Section 22112 specifically requires that you file your California surety bond within 10 days of execution. Every mortgage loan originator you employ will be covered by your bond. 

Who regulates licensing for California finance lenders and brokers?

The California Department of Financial Protection and Innovation enforces lending activity license requirements for the state's finance lenders and finance brokers. You can contact the DFPI by calling 1(866)275-2677 or emailing [email protected]

The Department of Financial Protection and Innovation requires this bond for state finance lender and broker licensing. The DFPI enforces a separate California residential mortgage lender and servicer bond requirement for state mortgage lender and servicer licensing. If you work as a mortgage professional in other states, we also offer mortgage license bonds nationwide. 

What are the surety bond requirements for mortgage brokers and lenders?

Your bond amount will be based on your aggregate loan volume. California Financial Code Section 22112 sets a minimum $25,000 bond amount and can require higher bond amounts for licensees who employ one or more mortgage loan originators or who make or arrange residential mortgage loans based on their loan volume.

  • $25,000 bond amount: licensees who do not originate residential mortgage loans or with aggregate loans from $0 to $1 million
  • $50,000 bond amount: licensees with aggregate mortgage loans from $1,000,001 to $50 million
  • $100,000 bond amount: licensees with aggregate mortgage loans from $50,000,001 to $500 million
  • $200,000 bond amount: licensees with aggregate mortgage loans more than $500 million

California Financial Code Section 22112 also clarifies that licensees with multiple licensed locations only need one surety bond. 

How do I update or change my finance lender or broker bond?

If the California Department of Financial Protection and Innovation requires your bond form to be updated for any reason, contact your surety company. If you purchased your California finance lender bond from SuretyBonds.com, email [email protected] to explain the needed change. The most common changes requested are updating the name or address on your electronically filed California bond to match your NMLS filing.

How do I renew my California finance lender or broker bond?

You must renew your finance lender or broker bond before its current term expires. Once you pay your SuretyBonds.com renewal invoice, instructions will be provided to keep your bond active for your next license term as required by California financing law.

How do residential finance lenders and brokers apply for a license in California?

Learn How to get a California Finance Lender or Broker License by reviewing our comprehensive guide.

Complete the steps below to apply for your California finance lender or broker license through the Nationwide Multistate Licensing System (NMLS). 

  1. Review the California DFPI Financing Law License New Application Checklist.
  2. Pay your required fees, including the $100 investigation fee, $100 processing fee, and $200 application fee.
  3. Upload all required documentation into NMLS.

The California DFPI advises any documents that need to be submitted to them directly be mailed to the following address. 

Department of Financial Protection and Innovation 
CFL Licensing Unit – New Applications
320 West 4th Street
Suite 750 
Los Angeles, CA 90013

What can finance lenders and brokers do to avoid claims against the California residential finance lender bond?

Financial lenders and brokers can avoid claims filed against their California bond by conducting business according to the provisions of the California Financing Law and all rules and regulations made by the Commissioner.

Call 1 (800) 308-4358 to talk with a Surety Expert