Mortgage Broker Bond Requirements by State
Most mortgage regulators don't publish a single bond amount — they publish a schedule. Your required NMLS bond depends on your license type (broker, lender, servicer, or individual MLO) and in many states, your prior-year loan volume. This guide maps the actual statutory schedules from state regulator websites, not competitor estimates.
Looking for premium costs instead? See our companion guide: Mortgage broker bond cost by state — NMLS tier pricing.
The Four License Types — and Why Each Has a Different Bond
NMLS classifies mortgage professionals into four categories. State regulators write separate bond schedules for each because the risk profile — and the potential consumer harm — differs significantly by function.
Mortgage Broker
Originates loans through third-party lenders. Does not fund loans. Bond protects borrowers from broker misconduct — forged documents, undisclosed fees, steering. Generally carries the lowest bond requirement in each state because the broker never holds funds.
Mortgage Lender / Banker
Originates and funds loans on its own warehouse line (table-funds). Higher bond than broker in every volume-tiered state because the lender actually controls borrower funds during the transaction. Upgrading NMLS authority from broker to lender triggers a new ESB filing at the lender amount.
Mortgage Servicer
Collects and applies borrower payments on existing loan portfolios. Bond protects borrowers from misapplied payments, escrow mismanagement, and unauthorized fee collection. Servicer bond schedules are often volume-tiered on unpaid principal balance (UPB) rather than origination volume.
Individual MLO (Loan Originator)
Individual licensed under SAFE Act. In most states, individual MLOs are covered by their sponsoring company's bond — no personal bond required. However, New York and a small number of states require a personal MLO bond based on individual origination volume under 3 NYCRR 420.15.
New York: The Clearest Example of Volume-Tiered Bonding
New York's DFS mortgage bond rules are the most well-documented example of how application-count-based (broker) and dollar-volume-based (banker, MLO) tiers work in practice. Under 3 NYCRR 410.14, a registered mortgage broker's bond is determined by the number of New York applications submitted in the prior calendar year — not dollar volume.
Bond adjustments must be made within 30 days of filing the annual Volume of Operations Report (VOOR). If DFS determines a pattern of consumer complaints, it can require double the standard tier amount per the regulation.
New York Mortgage Broker Bond — 3 NYCRR 410.14
Based on annual NY applications filed. Filed electronically through NMLS.
0–24 applications
$10,000
Minimum floor; new registrants
25–99 applications
$25,000
Low-activity brokers
100–299 applications
$50,000
Mid-volume brokers
300–599 applications
$75,000
Active brokers
600+ applications
$100,000
High-volume cap
Source: N.Y. Comp. Codes R. & Regs. Tit. 3 § 410.14 (Cornell LII / NY DFS)
NY Mortgage Banker (3 NYCRR 410.8) — Dollar-Volume Schedule
Source: N.Y. Comp. Codes R. & Regs. Tit. 3 § 410.8
NY Individual MLO (3 NYCRR 420.15)
Source: N.Y. Comp. Codes R. & Regs. Tit. 3 § 420.15 (NY DFS)
Use the NY-specific calculator to see which tier applies to your current volume — and estimate your annual premium.
NY Bond CalculatorVerified Bond Schedules: 19 States + 2 No-Bond States
The table below reflects statutes and regulatory code verified from state regulator websites (.gov) and official statute databases as of May 2026. All amounts are in U.S. dollars. “Volume-tiered” means the amount shown is the minimum floor — your actual requirement may be higher based on prior-year NMLS Mortgage Call Report (MCR) data.
NMLS Mortgage Bond Requirements by State (Verified .gov Sources)
Broker, lender, and servicer schedules. Floor amounts shown; volume-tiered states increase at renewal.
| State / License Type | Bond Amount | Statute / Regulation |
|---|---|---|
| New York (Broker) | $10K–$100K | 3 NYCRR 410.14 · application-count tiers |
| New York (Banker) | $50K–$500K | 3 NYCRR 410.8 · closed-loan dollar tiers |
| California (CRMLA / CFLL) | $25K–$200K | DFPI volume-tiered; covers MLO activity |
| New Jersey | $150K–$300K | N.J.S.A. 17:11C; flat $150K broker min |
| Massachusetts (Lender) | $100K–$500K | 209 CMR 42 · MCR-reported volume |
| Massachusetts (Broker) | $75,000 | 209 CMR 42 · flat rate, no volume tiers |
| North Carolina (Broker) | $75K–$250K | G.S. 53-244.103 · dollar-volume tiers |
| North Carolina (Lender) | $150K–$500K | G.S. 53-244.103 · higher lender schedule |
| Virginia | $25K–$150K | 10VAC5-160-15 · broker min $25K, lender min $50K |
| Ohio | $50K–$150K | ORC § 1322 · 0.5% of volume, capped $150K |
| Maryland | $50K–$750K | FI § 11-619 · volume-based, sworn statement |
| Georgia (Broker) | $150,000 | O.C.G.A. § 7-1-1003.2 · flat rate |
| Georgia (Lender) | $250,000 | O.C.G.A. § 7-1-1003.2 · flat rate |
| Texas (RMLC) | $50,000 | Fin. Code § 156 · 7 TAC § 58.107 |
| Texas (Servicer) | $25K–$50K | Fin. Code § 158 · 7 TAC § 79.4 · volume-based |
| Washington | $20K–$60K | WA DFI · WAC 208-660-175 · volume tiers |
| Florida | $10,000 | FL OFR · Ch. 494 · flat rate |
| Illinois | None | 205 ILCS 635 · no bond required |
| Idaho | None | NMLS checklist · no bond required |
Sources: NY DFS (3 NYCRR 410, 420), CA DFPI, NJ DOBI, MA DOB (209 CMR 42), NC Commissioner of Banks (G.S. 53-244.103), VA SCC (10VAC5-160-15), OH Division of Financial Institutions (ORC § 1322), MD OCFR (FI § 11-619), GA DBF (O.C.G.A. § 7-1-1003.2), TX SML (7 TAC § 58.107, § 79.4), WA DFI (WAC 208-660-175), FL OFR (Ch. 494). Verified May 2026.
How Volume Tiers Work at NMLS Renewal
Volume-tiered states recalculate your required bond amount each year based on the prior calendar year's Mortgage Call Report (MCR) filings in NMLS. The MCR is filed quarterly by all licensed mortgage companies. At annual renewal, the regulator compares your reported origination or servicing volume to the tier schedule and issues a notice if your bond amount needs adjustment.
Step 1: MCR Filing
Your surety company and NMLS exchange MCR data. For brokers in NY, this is the application count. For lenders in NC, OH, VA, and MD, this is loan origination dollar volume. Q4 MCR (covering October–December) is typically due in February.
Step 2: Tier Determination
The state regulator compares your reported volume to the statutory tier schedule. In Washington, this must happen after the Q4 MCR and the new bond rider must be delivered to WA DFI through NMLS by March 31. In NY, the adjustment deadline is 30 days after filing the VOOR.
Step 3: ESB Rider Filed
If your volume moved to a higher tier, your surety issues an electronic rider through NMLS increasing the bond face. If your volume decreased, you may qualify for a lower bond at renewal — but you cannot reduce mid-term without the regulator's approval.
North Carolina: The Dollar-Volume Tiered Broker Schedule
Under G.S. 53-244.103, a mortgage broker must increase its bond at the next May 31 deadline if originations in the prior December 31 measurement year crossed a threshold:
| Broker Originations (Dec 31 year) | Required Bond |
|---|---|
| Under $10M | $75,000 |
| $10M – $49.9M | $125,000 |
| $50M or more | $250,000 |
Lender schedule starts at $150,000 base and scales to $500,000 at $50M+. Filed with NC Commissioner of Banks on or before May 31.
Virginia: Five-Tier Broker Schedule (10VAC5-160-15)
Virginia SCC administers one of the cleaner five-tier volume schedules under 10VAC5-160-15. Both broker and lender floors are listed — lenders face a higher minimum:
| Annual Loan Volume | Broker Bond | Lender Bond (min) |
|---|---|---|
| $0 – $5M | $25,000 | $50,000 |
| $5M – $20M | $50,000 | $50,000 |
| $20M – $50M | $75,000 | $75,000 |
| $50M – $100M | $100,000 | $100,000 |
| Over $100M | $150,000 | $150,000 |
Source: 10VAC5-160-15, VA SCC. Lender must also maintain $200,000 in operational funds.
Flat-Rate States vs. Volume-Tiered States
Not all states use volume tiers. Several major markets — Texas, Georgia, New Jersey (at the broker level), and Florida — set a single bond amount regardless of how many loans you originate. Understanding which structure your state uses matters because:
- In flat-rate states, your bond cost is predictable year over year. A Texas residential mortgage loan company pays the same $50,000 bond at $5M volume as at $500M volume — but the premium rate may shift based on credit.
- In tiered states, growing your loan volume increases both your regulatory exposure and your bond cost. A North Carolina broker crossing $10M in originations must file a new $125,000 bond by May 31, up from $75,000. Budget for this before you cross the threshold.
- In Ohio, the bond is calculated as a formula: 0.5% of prior-year originations, with a $50,000 floor and $150,000 cap per ORC § 1322. An Ohio lender at $20M volume owes a $100,000 bond (0.5% × $20M). At $30M+, they hit the $150,000 cap.
Flat-Rate States (representative)
Amount does not change based on origination volume. Premium may change based on credit score at renewal.
Volume-Tiered States (representative)
Bond amount recalculated annually from MCR data. Budget for step-ups as you grow.
From the Producer's Desk
Experience-grade insight from a licensed surety bond producer — what we see in the field that doesn't appear in the state statute tables.
The single most common mistake we see at NMLS renewal is a mortgage company that grew its origination volume past a tier threshold in October or November but didn't budget for the bond increase. In North Carolina, that means a May 31 filing deadline for a bond that went from $75,000 to $125,000 — and by the time the carrier quotes, processes, and files the ESB rider, some companies are already past deadline and technically in violation.
The practical fix: track your rolling twelve-month origination volume on a spreadsheet tied to your MCR filings. The moment you cross $10M in NC, $5M in VA, or 25 applications in NY, flag it with your producer so the bond can be staged before the reporting deadline — not after.
The other pattern worth knowing: when a broker upgrades to lender authority in NMLS — adding a warehouse line — the state bond schedule flips immediately to the lender tier, not the broker tier. In New York, that means jumping from a $10,000–$100,000 broker bond (3 NYCRR 410.14) to a $50,000–$500,000 banker bond (3 NYCRR 410.8) the day the NMLS amendment is approved. Several companies have been surprised by this at renewal when they added table-funding authority mid-year. The ESB rider must be filed within the state's amendment processing window — not at the next annual renewal.
— BuySuretyBonds.com Producer, NMLS-related mortgage bond program
Know your state's bond requirement?
Check bond cost with our state calculators — or start your NMLS ESB application directly through the mortgage broker bonds hub.
States Without a Surety Bond Requirement
Two states confirmed in current NMLS checklists as not requiring a mortgage surety bond as a licensing condition:
Illinois — No Bond Required
The Illinois Residential Mortgage License Act of 1987 (205 ILCS 635) does not impose a surety bond requirement as a condition for licensure. IDFPR licenses mortgage companies through NMLS without a bond filing. Illinois companies must satisfy financial responsibility requirements through net worth and operational capital tests — not a surety instrument.
Source: IDFPR NMLS checklist; 205 ILCS 635
Idaho — No Bond Required
Idaho's Department of Finance does not require a surety bond for mortgage company or individual MLO licenses issued through NMLS. Idaho relies on background checks, financial statements, and net worth requirements. The NMLS Idaho checklist explicitly notes “Surety Bond: N/A” for company and individual licenses.
Source: Idaho DoF NMLS checklist
Federal bank and credit union exemptions: Federally chartered institutions (national banks, federal credit unions, federal savings associations) are supervised by federal regulators (OCC, NCUA, OTS) and are generally exempt from state mortgage licensing — and therefore state bond requirements — when operating under their federal charter. This exemption does not extend to subsidiaries or affiliates that are not themselves federally chartered.
How the NMLS Electronic Surety Bond (ESB) Process Works
Since 2016, most states have required mortgage bond filing through NMLS's Electronic Surety Bond (ESB) system. Paper bonds are no longer accepted in bond-required states that have adopted ESB. Here is how the workflow runs from initial license application to annual renewal:
Initial Application
Applicant submits NMLS company or individual license application. The application checklist identifies whether a surety bond is required and at what amount (based on new-applicant floor). Applicant contacts a licensed surety carrier that holds an NMLS surety account.
Bond Underwriting
The surety evaluates the principal's personal credit, business financials, years of experience, and NMLS history (any prior disciplinary actions). Most standard mortgage bonds ($10K–$75K) are approved immediately based on credit score alone. Higher-tier bonds ($150K–$500K) may require financial statements.
ESB Filing in NMLS
The surety carrier files the bond electronically through NMLS's ESB portal. The state regulator receives an electronic notification. The bond appears on the licensee's NMLS record. No paper bond or physical delivery required.
Annual Renewal + Volume Review
At renewal, the MCR data is used to determine the new bond tier (in volume-tiered states). If the tier increased, the carrier issues an ESB rider — an electronic amendment increasing the face amount. The premium for the additional coverage is prorated for the remainder of the bond term.
The legal entity on the bond must exactly match the entity name on the NMLS company record. DBA (doing business as) names do not appear on the bond — the bond covers the legal entity. Each separately licensed entity — including separately licensed branches in states like Massachusetts — requires its own ESB filing.
State-Specific Mortgage Broker Bond Pages
For detailed requirements, filing instructions, and bond quotes specific to your state:
Frequently Asked Questions
What is the difference between a mortgage broker bond and a mortgage lender bond?
A mortgage broker bond covers a company that arranges loans through third-party lenders without funding the loans itself. A mortgage lender (or banker) bond covers an entity that originates and funds loans on its own warehouse line. In every volume-tiered state — New York, North Carolina, Virginia, Ohio, and others — the lender schedule starts higher than the broker schedule. NY is a clear example: NY DFS broker bonds start at $10,000 (3 NYCRR 410.14) while NY mortgage banker bonds start at $50,000 (3 NYCRR 410.8). Upgrading from broker to lender authority on NMLS triggers a new ESB filing at the lender amount.
What does "volume-tiered" mean for a mortgage broker bond?
Volume-tiered means the required bond amount increases as your prior-year loan origination dollar volume grows. States like New York (application-count-based), North Carolina, Virginia, and Washington all use this structure. At NMLS renewal, your Mortgage Call Report (MCR) filings determine which tier applies. A broker who originated $11M last year in NC moves from the $75,000 base bond to the $125,000 tier — and must file the increased bond by May 31.
How does NMLS relate to the mortgage broker bond requirement?
NMLS is the unified electronic licensing platform. Each state's mortgage regulator sets the bond amount under that state's statute. NMLS collects and routes the electronic surety bond (ESB) filing from the carrier to the regulator. Paper bonds are not accepted in most states. The NMLS Resource Center publishes the state-by-state Mortgage License Surety Bond Schedule.
Does New Jersey have the highest mortgage broker bond requirement?
New Jersey's $150,000 minimum is among the highest flat-rate broker bond requirements nationally. Georgia also requires $150,000 for brokers (O.C.G.A. § 7-1-1003.2). However, Massachusetts lender bonds scale up to $500,000 based on volume, making the MA lender schedule one of the steepest. NJ scales to $300,000 for high-volume lenders and servicers.
Does every state require a mortgage broker bond?
No. Idaho and Illinois do not require a surety bond for NMLS mortgage licensing. Several federally chartered institutions are also exempt even in bond-required states. Always verify through the NMLS state checklist for your specific license type.
When does a Texas mortgage company need a surety bond?
Texas residential mortgage loan companies (Finance Code Chapter 156) must maintain a $50,000 bond per 7 TAC § 58.107. Texas mortgage servicers (Finance Code Chapter 158) must maintain a $25,000–$50,000 bond based on servicing portfolio size per 7 TAC § 79.4. Individual MLOs sponsored by a licensed company do not need a separate personal bond in Texas.
Related Resources
Mortgage Broker Bond Cost by State — NMLS Tier Pricing
What each tier actually costs in annual premium — Tier 1 ($100–$375), Tier 2 ($375–$3,000), Tier 3 ($3,000+). Includes cost-by-credit-score breakdowns and surety market notes.
Read Cost Guide →How Surety Bond Cost Is Calculated
The general framework for how credit score, bond amount, and license history combine to produce your annual premium — across all bond types, not just mortgage.
Read Pricing Guide →Mortgage Broker Bond Calculator — All States
Enter your state and estimated loan volume to see your required bond amount and estimated annual premium range.
Open Calculator →Mortgage Broker Bonds — All 50 States
Hub page for all state mortgage bond products. State-specific pages for California, New York, New Jersey, North Carolina, Maryland, and more — with NMLS ESB filing included.
Get Bonded →Ready to File Your NMLS Mortgage Bond?
BuySuretyBonds.com issues electronic surety bonds accepted by all NMLS state regulators. A-rated, Treasury-certified carriers. Same-day filing available for most states and license types.
Eric Drummond
Surety Bond Producer
- Nevada: License #4222379 (Insurance Producer)
All content is researched from official state and federal sources (.gov) and reviewed by surety bond specialists. We maintain direct integrations with Treasury-certified surety carriers rated A- or better by AM Best.
Authoritative Sources
All bond amounts and statutory references verified from official state regulator websites and statute databases as of May 31, 2026.
- New York: 3 NYCRR 410.14 (broker), 410.8 (banker), 420.15 (MLO) — via Cornell LII and NY DFS
- North Carolina: G.S. 53-244.103 — NC General Assembly statute database (ncleg.gov)
- Virginia: 10VAC5-160-15 — Virginia SCC administrative code (law.lis.virginia.gov)
- Washington: WAC 208-660-175 — WA DFI (dfi.wa.gov)
- Massachusetts: 209 CMR 42 — MA Division of Banks (mass.gov)
- New Jersey: N.J.S.A. 17:11C — NJ DOBI (nj.gov/dobi)
- Georgia: O.C.G.A. § 7-1-1003.2 — Georgia DBF
- Ohio: ORC § 1322 — Ohio Laws (codes.ohio.gov)
- Maryland: FI § 11-619 — Maryland OCFR / DLLR
- Texas: Fin. Code §§ 156, 158; 7 TAC §§ 58.107, 79.4 — TX SML (sml.texas.gov)
- Illinois: 205 ILCS 635 — Illinois General Assembly (ilga.gov)
- Florida: Chapter 494 — FL OFR (flofr.gov)
Disclaimer: This guide is for educational purposes and does not constitute legal advice. Bond requirements change through legislative action and regulatory rulemaking. Verify current requirements with your state's mortgage regulator and the NMLS Resource Center before filing. For bond products and NMLS ESB filing, visit BuySuretyBonds.com/mortgage-broker-bonds/.