Kansas Mortgage Broker Bond

It is one of four amounts — $50,000, $75,000, $100,000, or $125,000 — and the figure is not a flat number the way most states set it. Kansas reads two things: whether you maintain a bona fide office inside Kansas, and whether your Kansas loan origination topped $50,000,000 in the prior calendar year. With a Kansas office you file $50,000 (at or under $50M in volume) or $75,000 (over $50M). Without a Kansas office the same volume brackets become $100,000 and $125,000. The bond is filed with the Office of the State Bank Commissioner under the Kansas Mortgage Business Act.

Because Kansas ties the penal sum to your physical presence in the state, not only your volume. A company originating Kansas loans from out of state has no in-state office the OSBC can inspect and no local staff a borrower can reach, so the statute offsets that with a larger bond — a flat $50,000 more at each volume bracket. It is unusual: most states size the mortgage bond on loan volume alone. Kansas layers an in-state-office factor on top, which is exactly why two companies doing identical Kansas volume can carry very different bonds.

The OSBC does not accept a mailbox or a home desk. A bona fide office is a physical office located in Kansas, not in a personal residence, that keeps regular hours, is accessible to the public, is staffed by the registrant or an employee, is separate from any other registrant's office, and holds the company's books and records for its Kansas mortgage business. If your Kansas footprint does not clear every one of those, you are treated as having no Kansas office — and you file the $100,000 or $125,000 bond, not the $50,000 or $75,000 one.

You pay an annual premium, not the full bond amount. For well-qualified applicants the premium runs roughly 1% to 3% of the penal sum, so a $50,000 bond is often around $500 to $1,500 a year and a $125,000 bond around $1,250 to $3,750. Your rate inside that band is driven by personal and business credit, time in the industry, and financials — the bond amount itself is fixed by the Kansas schedule, so credit is the lever that moves your price.

The bond cannot simply be dropped. It may not be terminated without 30 days' prior written notice to the commissioner. And termination does not wipe the slate: the surety stays liable for violations of the Kansas Mortgage Business Act that occurred before the cancellation takes effect, and principal and surety remain liable for a period of two years from the date of any act or omission by the principal that gives rise to a claim. Plan for that two-year tail before you assume a cancelled bond is fully off your books.

No — do not confuse them. If your Kansas activity falls under the supervised lending side rather than the Mortgage Business Act, that is a separate registration with its own, larger bond (commonly $250,000). This page is the Mortgage Business Act company bond that mortgage brokers and lenders file with the OSBC. Tell us which activity your license actually covers and we will quote the correct bond — buying the wrong one is a common and expensive mistake.