To be eligible for and to maintain a mortgage lender license within the State of Maryland, the Office of the Commissioner of Financial Regulation (OCFR) requires a Mortgage Lender Bond.
According to the OCFR, a mortgage lender is any business that acts as a mortgage broker, mortgage servicer, and/or conducts a mortgage loan.
The Mortgage Lender Bond is provided by Jet Insurance Company to act as a financial assurance to the OCFR that the lender will comply with all state mortgage regulations. If a license violation occurs, funds from the surety bond may be used as a means of restitution to any party that has suffered monetary damages.
The OCFR requires the Mortgage Lender Bond amount to be equal to the total volume of loans processed by the mortgage professional in their previous year of business (details on how to determine your bond limit can be found in the price chart).
At Jet, prices for surety bonds are a small fraction of the bond’s limit and are based on a soft credit check of the applicant. Let’s say you qualify for a $50,000 Mortgage Lender Bond, Jet’s rates start at $188 for a one-year term or just $19 per month.
Additional examples of required bond limits and Jet’s preferred tier rates are available to view in the following chart.
|Volume of Loans||Bond Limit||Monthly||1-Year|
|$3,000,000 - $10,000,000||$100,000||$38||$375|
The Maryland Office of the Commissioner of Financial Regulation utilizes the Nationwide Multistate Licensing System and Registry (NMLS) for the administration of mortgage lender licenses, as well as the filing of surety bonds. So once you purchase the Mortgage Lender Bond with Jet, it must be filed with the NMLS.
Jet can handle filing your bond for you! We just need you to grant us permission to act as your designated surety company with the NMLS (Jet Insurance Company NAIC #16379). If you are unsure how to do this, the NMLS breaks it down within the Electronic Surety Bond for Licensees webpage.
In Maryland, mortgage lender licenses expire on December 31st of each year. To ensure you experience a seamless license renewal with the OCFR, select the renewal button at the bottom of the page for more information.
If you are in need of further details on the mortgage industry, licensure processes in multiple states, and applicable surety bond regulations, take a look at Jet’s comprehensive Mortgage License Bonds Guide.