Connecticut Mortgage Broker BondBroker $50K+ | Lender $100K+

The minimum bond amount for Connecticut mortgage brokers is $50,000, as established by CGS 36a-492. This is the floor -- your actual bond amount may be higher depending on loan volume, as determined under subsection (d) of the statute. Brokers with higher origination volumes may need bonds up to $150,000. Mortgage lenders and correspondent lenders start at a higher $100,000 minimum.

Connecticut requires a single surety bond that covers your main office and all branch offices. Unlike some states that require separate bonds per location, Connecticut consolidates coverage into one bond. This single bond must also cover every mortgage loan originator (MLO) you sponsor. The penal sum is determined by the aggregate dollar amount of loans originated, per subsection (d) of CGS 36a-492.

For a $50,000 broker bond with excellent credit (750+), expect $500-$1,500/year (1-3%). For a $100,000 lender bond, costs run $1,000-$3,000 with strong credit. Fair credit applicants (650-699) may pay 5-10% of the bond amount. Larger bonds required for high-volume operations will have proportionally higher premiums, but we shop multiple carriers for the best rate.

Under CGS 36a-492, the bond specifically protects borrowers and prospective borrowers damaged by a licensee's failure to satisfy judgments arising from the making or brokering of nonprime home loans. Claims can be filed against the bond principal (the licensee) or surety, or both, to recover the amount of the judgment. The bond also covers damages from violations of Connecticut lending laws.

If your surety company cancels your bond, your Connecticut mortgage license is automatically suspended. The surety must provide advance written notice to both you and the Commissioner of Banking before cancellation takes effect. You must replace the bond before the cancellation date to maintain your license. We provide renewal reminders 60 days before expiration to prevent lapses.

If you hold multiple license types (broker, lender, correspondent), you typically need separate bonds for each license. Each license type has its own minimum bond amount: $50,000 for brokers and $100,000 for lenders/correspondents. However, each individual bond covers your main office, all branches, and all sponsored MLOs for that license type.

Connecticut requires the bond to remain in effect for at least 24 months following expiration, revocation, suspension, or surrender of your license. This extended tail period ensures consumers can still file valid claims after you cease operations. Factor this into your planning if you are considering voluntary license surrender.

Upload your bond electronically through your NMLS account under the surety bond section. Connecticut accepts NMLS electronic filing. The bond must be written by a surety company authorized to write bonds in Connecticut. We provide bonds in the correct NMLS-accepted format and can assist with the upload process.