California Mortgage Broker Bond

All mortgage brokers licensed through the California Department of Financial Protection & Innovation (DFPI) must have a mortgage broker bond. Or, as it is also commonly called, a California Residential Mortgage Lender Bond. 

This surety bond is an agreement between three parties: 

• Principal: The mortgage broker that needs to get the bond.
• Obligee: Entity requiring the principal to get bonded (DFPI).
• Surety: The company that issues the bond and backs it financially (Ex. JW Surety Bonds).

A CA mortgage broker bond helps ensure a mortgage broker will conduct business ethically and in accordance with the California Finance Lenders Law. If the broker fails to do so, the surety initially covers the consumer’s losses caused by the broker’s misconduct. However, the broker must then pay the surety back in full. 

A mortgage broker bond in California costs a minimum of $500. The cost to get a California surety bond is a small percentage of the total bond amount required (generally 1% - 10%). This is known as a bond premium or bond rate. 

The bond amount needed for a mortgage broker bond ranges from $50,000 to $200,000. The exact amount an individual needs is based on their loan activities in the prior calendar year. If they employ others, it is the sum of all their activities. This amount is referred to as aggregate loans.  

The main factor that determines how much a bond costs is personal credit score. However, past bonding history, industry experience, and other financials may also be taken into consideration.

1. Apply For Your Bond

We offer two quick and easy ways to apply for a California Mortgage Broker Bond. 

1.  Apply for a bond online - The application only takes a few minutes, and it is available 24/7. This method generates an instant free quote sent directly to your email inbox. 
2. Call us at (888)-592-6631 - Connect with a bond expert who will assist you with your application and answer any questions. 

Ensure that you have the following information on hand when applying:

• Bond Name (California Residential Mortgage Lender Bond)
• Bond Amount (Varies: $50,000, $100,000, or $200,000)
• Email and contact information

2. Get a Quote

A bond quote will be sent to you through email. If you are satisfied with your quote, log onto our website to sign the required documents.

3. Purchase Your Bond

You will also receive an invoice along with your quote and the documents. Once paid, you will receive an email copy of your bond. Please ensure that all information on the bond is correct. If not, contact us right away. The original bond will be sent by mail.

All mortgage brokers in the State of California need to be licensed. There are two main organizations through which you get a California mortgage broker license. However, only one of those options has a bonding requirement.

• California Department of Financial Protection & Innovation (DFPI): Licenses issued through this agency—formerly known as the California Department of Business Oversight (DBO)—require a mortgage broker bond. This license is for any person engaged in the business of making or servicing residential mortgage loans within California. 
• California Department of Real Estate (DRE): This licensing option does not require a surety bond. It allows licensees to work as mortgage brokers and/or real estate brokers for businesses. 

If you have any questions regarding who needs a mortgage broker bond, bond amount, etc, please don’t hesitate to contact us. 

Recently, we assisted an applicant in figuring out her bonding needs. She mistakenly thought she needed a California mortgage lender bond to get licensed through the DRE. When we explained to her that they didn’t have a bonding requirement—only DFPI does—she was thrilled.