Massachusetts Mortgage License Bonds

Massachusetts Mortgage License Bonds

The Office of the Treasurer and Receiver General, Division of Banks manages the licensure of mortgage brokers, mortgage lenders, mortgage loan originators, and the registrations of exempt companies. 

To qualify for and maintain a license, a surety bond is required by the Division—either a Mortgage Broker Bond, Mortgage Lender Bond, Mortgage Loan Originator Bond, or a Mortgage Loan Originator-Exempt Company Bond (typically referred to as an Exempt Company Registration Bond).

QUOTE

Jet Insurance Company provides each of the Massachusetts Mortgage License Bonds listed above to act as a means of restitution to any party that has been financially damaged by the mortgage professional due to license violations such as negligence, misrepresentation, and/or fraud. 

What Is the Lowest Price for a MA Mortgage License Bond?

According to the Division, the Mortgage Broker Bond requires a standard $75,000 limit. 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. So in this case, rates would start at $281 for a one-year term or just $28 per month. 

Bond TermCost
Monthly$28
1-Year$281
MA Mortgage Broker Bond Pricing

As for the Mortgage Lender Bond, the Division bases the limit on the total loan amount processed by the lender in their previous year of business (bond amounts range from $100,000 to a max of $500,000). If you qualify for the minimum limit of $100,000, the cost of the bond is as low as $375 for a one-year term or $38 a month.

Additional examples of bond limits and Jet’s preferred tier rates can be found in the price chart below.

Bond LimitMonthly1-Year
$100,000$38$375
$200,000$75$750
$300,000$113$1,250
$400,000$150$1,500
$500,000$188$1,875
MA Mortgage Lender Bond Pricing

The Mortgage Loan Originator Bond requires a $25,000 limit by the Division, and Jet’s rates begin at an affordable $94 for a one-year bond term or just $9 a month. 

Bond TermCost
Monthly$9
1-Year$94
MA Mortgage Loan Originator Bond Pricing

And lastly, the Exempt Company Registration Bond limit must be equal to the total amount of residential loans closed by the licensee (details on how to determine your limit can be found in the following price chart). For instance, the cost of a $100,000  Exempt Company Registration Bond starts at $375 for a one-year bond term or a simple payment of $38 per month.

Further examples of loan amounts, Division mandated bond limits, and Jet’s preferred tier rates can be found in the price chart below.

Total Loans ClosedBond LimitMonthly1-Year
$250 million or more$100,000$38$375
$50 million to less than $250 million$250,000$94$938
Less than $50 million$500,000$188$1,875
MA Exempt Company Registration Bond Pricing

Details on Massachusetts Mortgage License Bonds

The Massachusetts Office of the Treasurer and Receiver General, Division of Banks utilizes the Nationwide Multistate Licensing System and Registry (NMLS) for the administration of mortgage licenses and registrations, as well as the filing of surety bonds. So once you purchase one of the various Mortgage License Bonds 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.

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.

How to Renew My Bond

For annually-purchased bonds, see Jet’s process to renew your bond. Hint- it’s simple.

How to Cancel My Bond

See the details surrounding cancelling your bond (a 30-day cancellation period is required).

Bond Claim Process

Mortgage professionals need to be aware of what causes a claim and what happens after a claim is made.

Massachusetts Mortgage Broker Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: