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How much does a mortgage lender licensee bond cost in Maryland?
A mortgage lender licensee bond in Maryland costs as little as 1% of the total bond amount for highly qualified applicants, and the bond amount is based on the volume of mortgage lending during the previous 12 months. The exact cost of a mortgage lender bond is subject to review by an underwriter and is based on the applicant’s credit, as well as the required surety bond amount.
If you’re ready to get bonded, call SuretyBonds.com at 1 (800) 308-4358 or fill out our online bond request form.
Why do I need a mortgage lender licensee bond in Maryland?
The Maryland Commissioner of Financial Regulation requires mortgage lenders to post a surety bond to become properly licensed to conduct work in the state. A mortgage lender is defined as any person who is a mortgage broker, makes a mortgage loan to any person, or is a mortgage servicer.
These bonds ensure that principals (mortgage lenders) are held liable for any financial losses suffered by customers or the state as a result of their unethical or unlawful business practices.
Our team of surety experts is here to help you with any bonding questions you might have. Submit a bond request during our business hours, and one of our bond experts will call you right away to walk you through our easy bonding process and get you a free, no-strings-attached surety bond quote.
Terms of a mortgage lender license bond
Mortgage lender licensee surety bonds are regulated by the Maryland Mortgage Lender Law found under the Maryland Financial Institutions Code. Mortgage lender licensee bonds are continuous until canceled, and the surety must provide the state with at least 60 days of notice prior to cancellation.
This surety bond form covers 6 types of licenses in Maryland, so be sure to tell our experts which license you’re applying for so we can get you the bond you need.
How to become a mortgage lender in Maryland
All new license applicants must submit applications through the Nationwide Mortgage Licensing System (NMLS). Use the Maryland Mortgage Lender License Company Application Checklist to help guide you.
Information and Materials to be submitted via NMLS
- Company Names
Other business names, fictitious names, or “doing business as” names should be listed under “Other Trade Names” on the NMLS Company Form. The trade names should also be included in the surety bond coverage.
- Trade name registration certificate
Upload a copy of the trade name registration certificate from the Maryland Department of Assessments and Taxation, if applicant will be operating under a name other than its legal name.
- Good standing status with the Maryland Department of Assessments and Taxation
Proof of good status may need to be uploaded on NMLS (can be found on the Maryland Department of Assessments and Taxation website). If the applicant is an entity formed in a state other than Maryland, attach a certificate of good standing issued by the applicant’s state of formation not more than 60 days before the date of the application.
- Proof of 3 years of mortgage lending experience
The sole proprietor, coventurer, general partner, principal officer, or member with at least 3 years of experience in the mortgage lending business must be listed on the NMLS Company Form.
- Credit report
The qualifying individual(s) in a position of control are required to authorize a credit report through NMLS. Individuals will be required to complete an Identity Verification Process (IDV), along with an individual attestation, before a license request for the company can be filed through NMLS.
- Criminal background checks
Direct owners (required for any owner of 10% or more; if the owner is a corporation, check applies to the president, CEO, or majority owner of that corporation), executive officers, and indirect owners (required when an individual’s ownership share is 10% or more) must submit background checks. If new fingerprints are required, you must schedule an appointment to do so.
- Financial statements
Indicate the company’s net worth and aggregate lending during the previous 12 months.
- An organizational chart or description showing the percentage of ownership; whether the applicant is owned by another entity, entities, or person; and whether the applicant has subsidiaries or affiliated entities.
- Surety bond in the correct amount
This varies on the volume of mortgage business in the past 12 months.
- Sworn notarized statement
This states the volume of mortgage business (including lending, brokering, and servicing) conducted by the applicant in the previous 12 months.
You will also be required to submit licensing fees through NMLS:
- Initial License fee $1,000.00
- Investigation fee: $1.00
- NMLS Processing fee: $100.00
- Credit Report Authorization Fee (For QIs & Control Individuals): $15.00
- FBI Criminal Background Check for MU2 Individual: $36.25 per person
To help guide you through the application process on NMLS, refer to the Quick Guide on Submitting a Company Form.
Materials and Information to be Submitted via Mail
Some application information and materials for a lender license must be submitted outside of NMLS. The following must be physically delivered by mail to the Commissioner of Financial Regulation within 5 business days of the electronic submission in NMLS:
- Detailed resumes of each control person or qualifying individual
- If any negative criminal history is reported on an individual’s criminal background check, a written explanation and any applicable supporting legal documentation must be submitted
- For those that lend money secured by a dwelling or residential real estate, you are required to submit proof of a minimum net worth between $25,000 and $250,000, depending on the volume of business in the prior 12 months. See details regarding this requirement on the checklist.
To become licensed as a mortgage lender, applicants must first obtain a surety bond. Fill out our quick bond application to take the first step towards getting bonded.
Mortgage Industry Surety Bonds Available Nationwide
Many states have specific surety bond requirements for mortgage professionals. This means mortgage professionals who work in several states often have multiple surety bonds. Use the map below to learn more about mortgage bonds in other states.