The Ohio Department of Commerce, Division of Financial Institutions (DFI) regulates mortgage lenders, mortgage brokers, mortgage servicers, and mortgage loan originators. A part of that regulation is filing a surety bond to the Nationwide Multistate Licensing System (NMLS). The Residential Mortgage Lending Act Bond is required to guarantee restitution to financially harmed person(s) should a mortgage business act unethically or illegally.
Jet’s streamlined application will get you the Ohio Residential Mortgage Lending Act Bond quickly and at a competitive price.
The cost is only a small percentage of the bond limit and is based on your personal credit. The price chart indicates rates for someone with preferred credit at different bond limits.
|Bond Limit||Monthly Cost||Annual Cost|
Jet’s monthly subscription is beneficial, especially with the higher bond limits. You can pay a small monthly fee rather than a large lump sum, and your bond will stay active until cancellation is requested!
The bond limit is 0.5% of the aggregate amount of residential mortgage loans originated in the past calendar year, varying from $50,000 to $150,000. The maximum bond limit for mortgage loan originators is $100,000.
|Loans Originated in the Previous Year||Bond Amount|
|$0 to $10,000,000||$50,000|
|$11,000,000 to $12,000,000||$60,000|
|$13,000,000 to $14,000,000||$70,000|
|$15,000,000 to $16,000,000||$80,000|
|$17,000,000 to $18,000,000||$90,000|
|$19,000,000 to $20,000,000||$100,000|
|$21,000,000 to $22,000,000||$110,000|
|$23,000,000 to $24,000,000||$120,000|
|$25,000,000 to $26,000,000||$130,000|
|$27,000,000 to $28,000,000||$140,000|
|$29,000,000 to $30,000,000||$150,000|
|$30,000,000 and up||$150,000|
The bond limit is increased by $10,000 for each branch location.
The Ohio Department of Commerce, Division of Financial Institutions issues licenses and certificates of registration for various mortgage-related businesses in the state. Mortgage loan originators receive a license and are considered licensees. Mortgage brokers, lenders, and servicers receive a certificate of registration and are considered registrants. Mortgage loan originators are employed by a mortgage broker or lender.
Here are some of the duties of each mortgage business type:
Mortgage Loan Originator (MLO)
Mortgage loan originators do not need a bond when they work for an entity holding a Certificate of Registration under the Residential Mortgage Lending Act. A bond is only needed when the company they work for holds a letter of exemption under Ohio Revised Code Section 1322.05.
The Ohio Department of Commerce, Division of Financial Institutions manages licensing and certification of consumer finance companies and chartered financial institutions. The DFI develops regulations for mortgage lenders, brokers, servicers, and loan originators, among other financial businesses. The Residential Mortgage Lending Act Bond is required by the Ohio DFI for various mortgage businesses as a form of protection for Ohio’s citizens when they have encountered financial harm from dealings with a licensee or registrant.
Jet’s role as a surety company is to guarantee payment when a claim is made on the bond, taking the financial weight off the Division of Financial Institutions.
Exemptions from these regulations can be found in Ohio Revised Code Section 1322.04.
To get started, click the Apply button above. Jet’s application can be completed in a few minutes, only asking for basic information including your business name and the required bond limit. A soft credit check is completed to confirm a quote, which will not affect your credit.
Generally, the underwriting team will need to conduct a quick review of the details submitted before a quote is provided. Once ready, a quote will be emailed to you and you can purchase the bond directly online.
Mortgage servicers, brokers, and lenders are to file their electronic surety bond within the NMLS. Jet takes part in this process, but you must first grant us access to do so. Once the bond is on file, any changes can easily be made by contacting us and we will make the updates in the NMLS.
Individual mortgage loan originators also do the majority of their “paperwork” electronically through the Nationwide Multistate Licensing System. However, the bond must be emailed to the Division of Financial Institutions, which Jet will do for you! Once the bond is paid for we will proceed with emailing the bond to the DFI at firstname.lastname@example.org. If you end up sending in the bond yourself, the email subject line should be “MLO Surety Bond”, per the NMLS instructions.
No problem, just send us a request via email at email@example.com. Jet will request cancellation, and the bond will remain active for 30 days.
If you pay monthly, the payments will simply stop after the 30-day cancellation period. If you paid for the bond in full, Jet will calculate any unused premium left on the bond (with the 30-day period in mind) and return it to you when applicable.
The term of the bond must coincide with the registration term. That being said, if there are no changes to the bond limit and as long as payments are received, the bond will stay on file until cancelled. Jet will send you a reminder to make a renewal payment if you paid for the bond upfront.
The total amount of mortgage loans originated may change annually, affecting your bond limit. It is important that you let Jet know of any changes so we can update the bond in the NMLS and adjust your payments, if necessary.
If you comply with the Residential Mortgage Lending Act (RMLA), claims are easily avoidable. Claims and other disciplinary action only occur when the mortgage business causes financial damage as a result of violating the RMLA and does not fix the issue. Actions that lead to license or certificate of registration trouble include:
Any person may bring suit against the licensee or registrant for recovery of damages. The DFI may also take action after notice and opportunity for a hearing, including license or certificate of registration suspension or revocation, a maximum fine of $1,000 for each day of the violation, and a bond claim. You are generally given the chance to address and correct a situation before serious penalties are pursued.
As a direct surety company, we provide defense and weed out false claims. Jet will collect all of the details and documentation surrounding the claim before conducting a thorough investigation.
Justified claims will be paid to the financially harmed person(s) in the claim amount, not to exceed the bond limit. Per Section 1322.32 of the Revised Code, the registrant or licensee must notify the Superintendent of Financial Institutions of any action brought against them or their employees, with details regarding the action taken. Jet must also give notice to the Superintendent within 10 days of making a claim payment, with details identifying the person and claim.
Surety bonds act as an extension of credit, only paying out for lack of compliance with the rules, regulations, and laws. Because of this, Jet must be reimbursed by the mortgage business for the paid out claim. Failure or refusal to restore the bond to its full amount will result in license or certificate registration revocation.