Texas Residential Mortgage Loan Servicer Bond

Texas Residential Mortgage Loan Servicer Bond

The Texas Department of Savings and Mortgage Lending must receive a Mortgage Loan Servicer Bond from an applicant seeking to register as a servicer. The bond is used to protect the public from financial damages caused by servicers breaking the rules of their registration.  

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You can purchase your Mortgage Loan Servicer Bond with Jet’s monthly payment plan or choose from an annual or multi-year term. Save now with the lowest rates avaialabe!

What Is the Lowest Price for the Residential Mortgage Loan Servicer Bond?

You can purchase your Mortgage Loan Servicer Bond for as low as $9 a month or $94 a year. Rates are dependent on the bond limit and a soft credit check. The chart below shows what a preferred credit applicant would be approved for.  

Bond LimitServicing AmountMonthlyAnnual
$25,000under $25 million$9$94
$50,000over $25 million$19$188
Texas Residential Mortgage Loan Servicer Bond Cost

The limit for the Mortgage Loan Servicer is based on the volume of business the servicer. If you business does over $25 million in a year the bond limit needed is $50,000. Otherwise it is a $25,000 limit.

Why Is the Mortgage Loan Servicer Bond Required?

The Department established a bond requirement for mortgage loan servicers as a way to guarantee that the servicer will not dupe the people of Texas or the Department of Savings and Mortgage Lending and withhold money that is owed. If a violation of the Texas Residential Mortgage Loan Servicers Act (Chapter 158 of the Texas Finance Code) occurs and the servicer does not provide compensation for damages as ordered by the Commissioner of the Department, the injured party can file a claim on the bond.

How to Apply for the Residential Mortgage Loan Servicer Bond With Jet

It’s easy to apply for your Residential Mortgage Loan Servicer Bond! Jet has simplified the application process and only asks for the information that is needed. Of course, since a soft credit check is required, this includes a social security number. 

Once you have finished filling everything out, you will receive a quote that is ready to purchase. Simply choose whether to pay monthly or by the year and submit payment information to complete your bond purchase. 

How to File a Texas Residential Mortgage Loan Servicer Bond

All mortgage servicer bonds must be filed electronically through the Nationwide Multistate Licensing System (NMLS). In short, the registered loan servicer must grant Jet as their surety company in the NMLS, and we will upload the bond form. A signature may be required on the bond form and then the process will be complete. For more information, you can review the Residential Mortgage Loan Servicer Registration New Application Checklist.

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Can I Cancel My Texas Mortgage Loan Servicer Bond With Jet?

Yes, you can request to cancel your Mortgage Loan Servicer Bond by emailing Jet at [email protected]. We will notify the Department of Savings and Mortgage Lending and the 60-day cancellation period will begin. For monthly payment plan subscribers, payments will continue until the cancellation is complete; at that time, your payment information will be removed. For those who paid for a full year, any time left after the cancellation is finalized will be calculated into a refund. 

How to Renew the Residential Mortgage Loan Servicer Bond

The Residential Mortgage Loan Servicer Bond expires on the last day of the year (December 31st). You will need to renew the bond each year along with your registration as a servicer. Jet will send you a notice via mail and email. All you need to do is fill out the notice and submit payment for the new term to renew your bond.

How Does a Residential Mortgage Loan Servicer Avoid Bond Claims?

To keep claims from being filed against your Mortgage Loan Servicer Bond, you must follow the obligations in the Residential Mortgage Loan Servicer Act. If you violate the Act, you may be ordered to pay for the damages incurred. You are responsible for paying restitution for your actions and failing to do so would lead to a bond claim. Simply put, the best way to avoid claims is to comply with the regulations given and, if there is a violation that causes monetary loss, own up to it. 

The full complaint procedure can be found in Subchapter C of the Act, summarized below:

  1. After a complaint has been filed, the Commissioner will notify the servicer’s representative and begin an investigation of records, books, documents, etc. to decide if a violation has occurred
  2. If the servicer is found to be in violation of any pertinent rules, the Commissioner will issue an order to cease and desist the prohibited activity or a final order to compensate for damages
  3. If the servicer fails to comply with the final order and compensate the complainant, the complainant can file a claim on the bond to be reimbursed in an amount that is not more than the bond limit

If the bond is used to pay out a claim, the Department will require a new bond to be filed. 

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.

Texas Residential Mortgage Loan Servicer 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: