California Residential Mortgage Lender or Servicer Bond
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How much does a California residential mortgage lender or servicer bond cost?
California residential mortgage lender and/or servicer bond costs start at $500 annually. Your personal mortgage lender license or servicer bond cost will be provided after a quick application review.
How do I get a residential mortgage lender or servicer bond in California?
You can apply for your California residential mortgage lender or servicer bond online 24/7. You'll need to provide your lender or servicer name and Nationwide Multistate Licensing System (NMLS) license number for California Department of Financial Protection and Innovation filing approval. Once your order has been processed, SuretyBonds.com will file your California surety bond directly with NMLS.
How fast can I get a mortgage lender or servicer surety bond?
Our industry-leading technology and responsive customer service team allow us to file your official California mortgage lender or servicer 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 California mortgage bonds 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.
What is a California residential mortgage lender bond?
California Financial Code Section 50205 requires residential mortgage lender and servicer licensees file and maintain a $50,000 surety bond. This bond is specifically used to recover expenses, fines, or fees incurred by borrowers or consumers whose lender or servicer fails to comply with the California Residential Mortgage Lending Act. The state's official form is titled “Bond of Residential Mortgage Lender and/or Servicer Financial Code Section 50205” but is used for reference only. Effective 9/1/2021 all official California mortgage lender and/or servicer bonds must be electronically filed directly with the NMLS.
How does a California residential mortgage loan bond work?
If a mortgage lender or servicer fails to comply with the California Residential Mortgage Lending Act, the state and harmed borrowers or consumers can file a claim on the bond to recover losses. The issuing surety company will pay valid claims up to the full $50,000 bond amount, which the mortgage broker or servicer must reimburse. California Financial Code also authorizes the commissioner to increase a licensee's bond amount to $100,000 in the event of noncompliance.
For a list of actions prohibited under this bond, refer to California Financial Code Section 50204.
Who regulates residential mortgage lender and servicer licensing?
The California Department of Financial Protection and Innovation enforces the state's mortgage lender license guidelines, including this surety bond requirement. You can contact the DFPI by calling 1(916)576-8543 or emailing [email protected].
The California DFPI requires this bond for state residential mortgage lender and servicer licensing. The DFPI also requires a separate California finance lender or broker bond. If you work as a mortgage professional in other states, we also offer mortgage license bonds nationwide.
Who needs a residential mortgage lender or servicer bond in California?
This California residential mortgage servicer or lender bond is required for businesses or individuals making or servicing residential mortgage loans. You need this bond if you're licensed as a residential mortgage lender or servicer in California.
How do I update or change my mortgage lender or servicer bond form?
If the California Department of Financial Protection and Innovation Financial Services requires your surety bond documentation to be updated for any reason, contact your surety company. If you purchased your bond from SuretyBonds.com, email [email protected] to explain the needed change. The most commonly requested changes for these bonds are updating your name or license number to match your new or exiting NMLS filing.
How do I renew my mortgage lender and servicer bond?
You must renew your California residential mortgage loan servicer or lender 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 lender or mortgage servicer license term.
What are the requirements to be licensed as a California mortgage lender and/or servicer?
Complete the following steps to apply for your residential mortgage loan lender or servicer license in California.
- Fill out your NMLS online application.
- Upload all required application documents.
- Purchase and file your $50,000 California surety bond requirement.
- Pay the required fees ($900 application fee, $100 investigation fee, $62 fingerprint processing fee).
Additional Resources
California Bond of Residential Mortgage Lender and/or Servicer Form
California DFPI: About California Residential Mortgage Lending Act
California DFPI: California Residential Mortgage Lending Act
California DFPI: How do I Apply for a Residential Mortgage Lender and/or Servicer License?
Have Questions?
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