Ohio Mortgage Broker Bond

The Ohio Division of Financial Institutions regulates the Residential Mortgage Lending Act Certificate of Registration. Per Ohio Revised Code § 1322.07, registration is required for all mortgage brokers, lenders and servicers. A surety bond is required to obtain a Certificate of Registration.

This surety bond is an agreement between three parties: 

• Principal: The mortgage broker or lender that needs to get the bond.
• Obligee: Entity requiring the principal to get bonded.
• Surety: The company that issues the bond.

Mortgage brokers, lenders and servicers are required to abide by state rules and regulations. Those affected by a violation of the rules and regulations can file a claim against the bond. The surety compensates the claimant for a validated claim, and the principal must reimburse the surety for that amount. Avoiding claims against the bond is easy to do by following the required regulations. 

The cost of an Ohio Residential Mortgage Lending Act Certificate of Registration starts at $500 and goes up to $15,000 or more. The bond amount ranges from $50,000 to $150,000, depending on loan volume and an additional penal sum of ten thousand dollars for each location, in excess of one.

The cost of the bond is typically between 1% and 10% of the bond amount. This is also often referred to as the bond rate or the bond premium. This chart will help you estimate your bond cost before applying.

Our customers are often interested in the factors affecting how much a bond costs? We consider an applicant’s credit scores, finances, industry experience and bond history when determining the bond cost. 

1. Apply For Your Bond

Obtaining an Ohio Residential Mortgage Lending Act bond is a three-step process. The first step is to apply using your choice of methods.

1. Apply for a bond online – Spend a few minutes applying online at any time of day.
2. Call us at (888)-592-6631 – Our helpful bond specialists are happy to answer your questions and take your application by phone. 

When applying, you will need:

• Bond name (Ohio Residential Mortgage Lending Act Surety Bond)
• Bond amount ($50,000 - $150,000)
• Email and contact information

2. Get a Quote

Our customers benefit from receiving an instant bond quote via email. Our bond experts can review your quote with you upon request. 

3. Purchase Your Bond

You can conveniently view the invoice and documents online. If you see an error during your review, please let us know before signing the documents. Pay the invoice and sign the documents online. Then, you will receive the original bond via email.

When applying for an Ohio Mortgage broker license, an electronic surety bond must be submitted through the NMLS. The requirements for a mortgage broker or lender license are enforced by the Ohio Division of Financial Institutions.

The Residential Mortgage Lending Act Bond must be issued in favor of the superintendent of financial institutions and set at an amount equal to 0.5% of the total residential mortgage loans originated in the previous calendar year, capped at $150,000. However, the bond for mortgage lenders and brokers cannot be less than $50,000, with an additional $10,000 required for each additional business location beyond the first. For registrants exclusively engaged in mortgage servicing, the bond amount must be at least $150,000. The bond's term must align with the registration period.

If you have any questions regarding the definition and role of mortgage brokers and lenders, the required bond amount, etc., please contact us.

Recently, a customer contacted our bond experts with a question about the required bond amount. She was grateful for the personalized attention she received as we answered her questions. Our team took her application over the phone to assist with her bond purchase.

To complete the registration process for South Dakota mortgage brokers, lenders and servicers, several documents must be submitted to the Nationwide Mortgage License System. The required items include:

• Application
• Surety bond
• Financial statement
• Qualifying individual or operations manager
• Credit report
• FBI criminal background check
• Surety bond declaration and company resolution
• Business plan
• Business continuity plan
• Interest in appraisal companies
• Certificate of Authority/Good Standing
• Company staffing and internal policies
• Document samples
• Formation documents
• Management chart
• Deed, lease or sublease
• Organizational chart

Nationwide Mortgage Licensing System. (n.d.). Checklist compiler.
https://mortgage.nationwidelicensingsystem.org/slr/SitePages/Checklist-Compiler.aspx

Casetext. (n.d.). Ohio Revised Code § 1322.07: Requirement to obtain certificate of registration or license. Casetext.
https://casetext.com/statute/ohio-revised-code/title-13-commercial-transactions-ohio-uniform-commercial-code/chapter-1322-mortgage-brokers-loan-officers/section-132207-requirement-to-obtain-certificate-of-registration-or-license

Ohio Department of Commerce. (n.d.). Division of financial institutions. Ohio Department of Commerce.
https://com.ohio.gov/divisions-and-programs/financial-institutions/financial-institutions

Ohio Division of Financial Institutions. (n.d.). RMLA surety bond declaration and company resolution. Ohio Division of Financial Institutions.
https://mortgage.nationwidelicensingsystem.org/slr/StateForms/OH1-RMLA-Surety%20Bond%20Declaration%20and%20Company%20Resolution.pdf