Last updated: September 15, 2026|General Pennsylvania mortgage broker bond information — confirm current requirements with the licensing authority.

PA DoBS · 7 Pa.C.S. § 6131

Pennsylvania Mortgage Broker Bond

Most brokers need two bonds. Lenders need one, but it goes to $500,000.

Pennsylvania mortgage brokers licensed through the Department of Banking and Securities (DoBS) and the NMLS owe a flat $100,000 penal bond under 7 Pa.C.S. § 6131(e)(1) if they accept advance fees -- and, separately, a $50,000-$150,000 bond covering their sponsored loan originators, sized to Pennsylvania-secured loan volume under § 6131(e)(3). Both can be required at once. Mortgage lenders skip the advance-fee bond but face their own single coverage bond that scales to $500,000.

$100,000

Flat broker advance-fee bond

$50K-$150K

Broker's originator-coverage bond

Why Most Pennsylvania Brokers Are Bonded Twice

Section 6131(e) does two things in the same subsection, and it's easy to read it as one bond when it's actually two independent conditions. Paragraph (e)(1) is a flat $100,000 penal bond -- not tied to volume -- that runs to the Commonwealth and protects any person harmed by a broker's failure to perform after collecting an advance fee. Paragraph (e)(2) carves out an exemption: brokers who prove to DoBS they never accept advance fees don't need it. Paragraph (e)(3) is a completely separate requirement -- every broker, exempt or not, must also carry a bond sized to cover the mortgage originators they sponsor, running $50,000 at under $15M in PA volume up to $150,000 at $50M or more.

Practical read: a typical advance-fee-collecting broker doing $20M in Pennsylvania volume owes $100,000 (flat) + $75,000 (coverage tier) = $175,000 in total bond exposure across two separate instruments, both filed through NMLS.

Total Broker Bond Exposure

Worked Example

Given$20,000,000 in PA volume, broker accepts advance fees

$100,000 flat + $75,000 tier

Bond Amount$175,000 total

Given$20,000,000 in PA volume, broker accepts advance fees

$100,000 flat + $75,000 tier

Bond Amount$175,000 total

7 Pa.C.S. § 6131(e)(1)-(3). Brokers exempt under (e)(2) owe only the coverage-tier bond.

Official Pennsylvania Requirements

"The department shall issue a mortgage broker license applied for under this chapter if the applicant obtains and will maintain a bond in the amount of $100,000, in a form acceptable to the department, prior to the issuance of the license, from a surety company authorized to do business in this Commonwealth. The bond shall be a penal bond conditioned on compliance with this chapter and subject to forfeiture by the department and shall run to the Commonwealth for its use."

Pennsylvania General Assembly -- Title 7 (Banks and Banking) • 7 Pa.C.S. § 6131(e)(1)

The Broker's Originator-Coverage Tiers

This second bond applies whether or not you owe the $100,000 advance-fee bond. Volume means Pennsylvania dwellings or residential real estate closed by your sponsored originators in the calendar year.

Pennsylvania Broker Originator-Coverage Bond -- 7 Pa.C.S. § 6131(e)(3)

Set from anticipated volume at initial licensing, reassessed annually from the periodic report

Under $15M

$50,000

PA-secured loan volume originated by your sponsored MLOs in the calendar year

$15M – $29.99M

$75,000

Second coverage tier

Most Common

$30M – $49.99M

$100,000

Third coverage tier

Same dollar figure as the flat advance-fee bond -- easy to confuse the two on a compliance checklist.

$50M or more

$150,000

Top coverage tier for high-volume broker shops

Source: 7 Pa.C.S. § 6131(e)(3), Pennsylvania General Assembly Title 7.

Broker, Lender, or Individual Originator -- Three Different Bond Rules

Section 6131 doesn't use one bond schedule for the whole mortgage industry. Each of the three license types answers to its own paragraph, with its own math.

How Pennsylvania Splits Mortgage Bonding by License Type

Every figure below is drawn directly from 7 Pa.C.S. § 6131

License Type	Bond Structure	Range	Statute
Mortgage Broker	Flat advance-fee bond + volume-tiered originator coverage (stacked)	$50,000 - $250,000 combined	§ 6131(e)(1)-(3)
Mortgage Lender	Single volume-tiered originator-coverage bond	$100,000 - $500,000	§ 6131(c)(5)
Individual Originator	Personal bond, only if sponsor doesn't self-cover	$25,000 - $150,000	§ 6131(f)(4)

Lenders additionally carry a $250,000 minimum net worth, $1,000,000 funding line, and Fannie Mae/Freddie Mac-standard fidelity bond coverage -- none of which applies to the broker license.

Source: 7 Pa.C.S. § 6131, Pennsylvania General Assembly.

What Lenders Carry That Brokers Don't

A mortgage lender license under § 6131(c) requires a $250,000 minimum net worth maintained at all times, a $1,000,000 line of credit or repurchase agreement, and fidelity bond coverage meeting Fannie Mae or Freddie Mac guidelines -- on top of the volume-tiered surety bond. None of that appears in the broker statute. It's the tradeoff for the lender bond skipping the flat $100,000 advance-fee layer.

Why the Broker Bond Is More Complex, Not More Expensive

A broker's worst case ($250,000 combined) still sits below a large lender's worst case ($500,000). The broker bond isn't bigger -- it's just split into two instruments with two different legal purposes, which is where first-time PA applicants most often under-file.

Know your license type and volume tier? Get your Pennsylvania bond quote in about two minutes.

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What the $100,000 Bond Actually Costs, by Credit Score

Because the advance-fee bond is a flat six-figure penal sum -- not scaled to volume -- your credit profile drives the premium more than in almost any other bond on this site.

Pennsylvania $100,000 Mortgage Broker Bond -- Annual Premium by Credit Tier

Based on a $100,000 bond amount

Credit ScoreEst. Annual Cost

Excellent (700+)Rate: 1% - 3%
$1,000 - $3,000
Good (650-699)Rate: 3% - 5%
$3,000 - $5,000
Fair (600-649)Rate: 5% - 8%
$5,000 - $8,000
Challenged (below 600)Rate: 8% - 15%
$8,000 - $15,000

Rates apply to the flat $100,000 advance-fee bond under § 6131(e)(1) only. If you also owe the originator-coverage bond, add its own credit-tiered premium on the $50,000-$150,000 tier amount.

A broker at the top $150,000 coverage tier with fair credit could see $5,000-$8,000 on the flat bond plus roughly $7,500-$12,000 on the coverage bond -- get an exact combined quote instead of estimating both separately.

Filing Your Pennsylvania Bond Through NMLS

What DoBS and the NMLS Electronic Surety Bond process actually require

Confirm Your License Type and Advance-Fee Status

Decide broker, lender, or individual originator, and -- if broker -- whether you can demonstrate to DoBS that you never accept advance fees. This decision alone determines whether you file one bond or two.

Calculate Your Coverage Tier

Use your anticipated first-year PA-secured loan volume (initial applicants) or your prior periodic report (renewing licensees) to land on the correct $50K-$150K broker tier, $100K-$500K lender tier, or $25K-$150K individual-originator tier.

Purchase the Bond(s) From a PA-Authorized Surety

Your bond must come from a surety company authorized to do business in the Commonwealth. Brokers filing both bonds typically use the same surety for both to simplify renewal tracking.

File Electronically Through NMLS

Pennsylvania requires all mortgage license applicants and licensees to use the Nationwide Mortgage Licensing System and Registry. The bond is filed as an NMLS Electronic Surety Bond (ESB) -- the same legal instrument as a paper bond, submitted digitally with power of attorney attached.

Watch the 30-Day Cancellation Clause

No PA mortgage bond is compliant unless it includes a provision that it can't be canceled without giving DoBS at least 30 days' written notice. Confirm this language is in your bond form before submitting.

Update the Bond When Volume Crosses a Tier

DoBS reassesses your required amount annually from your periodic report. If your PA volume moves into a higher breakpoint, your surety needs to rider the existing bond up -- don't wait for a deficiency notice.

New to bonding in general? Our step-by-step surety bond guide covers the mechanics before you file.

If You're Licensing as a Mortgage Lender Instead

One bond, but the top tier is the highest amount anywhere on this page.

Pennsylvania Mortgage Lender Bond -- 7 Pa.C.S. § 6131(c)(5)

Covers the lender's sponsored mortgage originators, reassessed annually from the periodic report

Under $30M

$100,000

PA-secured mortgage loan volume originated by sponsored MLOs

$30M – $99.99M

$200,000

$100M – $249.99M

$300,000

Most Common

$250M or more

$500,000

Five times the entry-level lender bond -- and lenders also need a $1M funding line and $250,000 net worth on file.

Source: 7 Pa.C.S. § 6131(c)(5), Pennsylvania General Assembly Title 7.

Both Bonds, One Filing

We place the $100,000 advance-fee bond and the volume-tiered coverage bond together when you need both.

Every Tier Underwritten

From a $25,000 individual-originator bond to a $500,000 top-tier lender bond, our carriers cover the full § 6131 scale.

NMLS ESB Filing

We file directly as an NMLS Electronic Surety Bond with power of attorney attached -- no paper certificate to lose.

Pennsylvania Mortgage Bond Questions We Get Asked

Do I need one Pennsylvania mortgage bond or two?

If you're licensed as a mortgage broker and accept advance fees from Pennsylvania borrowers, you need two: a flat $100,000 penal bond under 7 Pa.C.S. § 6131(e)(1), plus a separate surety bond covering your sponsored mortgage originators, sized $50,000-$150,000 by your prior/anticipated PA loan volume under § 6131(e)(3). Brokers who can prove to the Department of Banking and Securities that they never accept advance fees skip the $100,000 bond and only need the volume-tiered coverage bond. Mortgage lenders and individual originators each face a single bond, not a stacked pair -- the two-bond structure is specific to the broker license.

How much does a $100,000 Pennsylvania mortgage broker bond actually cost?

Premiums run 1-3% of the penal sum for excellent credit (700+), meaning $1,000-$3,000/year on the flat $100,000 advance-fee bond alone. Good credit (650-699) typically lands at 3-5% ($3,000-$5,000/year). Fair credit (600-649) runs 5-8% ($5,000-$8,000/year), and challenged credit can reach 8-15% ($8,000-$15,000/year). If you also owe the originator-coverage bond, add its own credit-based premium on top -- a broker at the $100,000 coverage tier with fair credit could pay $10,000-$16,000/year combined across both bonds. Bundling both bonds with one surety often earns a small combined-filing discount.

Can I get out of the $100,000 advance-fee bond?

Yes, but only by demonstrating to the Department of Banking and Securities under 7 Pa.C.S. § 6131(e)(2) that you do not and will not accept advance fees from Pennsylvania borrowers. This exemption has to be established to the department's satisfaction, not simply self-certified on a form -- expect DoBS to ask how your fee structure works before granting it. Brokers who collect any fee before closing (application fees, lock-in fees, processing fees charged up front) generally cannot qualify for the exemption and need the full $100,000 bond regardless of loan volume.

What's the real difference between the PA broker bond and the PA lender bond?

A mortgage broker's bond obligation under § 6131(e) tops out at $250,000 combined ($100,000 advance-fee bond plus the $150,000 top coverage tier) and the license itself has no net worth or credit-line test. A mortgage lender under § 6131(c) skips the advance-fee bond entirely but faces a single coverage bond that scales all the way to $500,000 at $250M+ in PA volume, plus a $250,000 minimum net worth requirement, a $1,000,000 line of credit or repurchase agreement, and Fannie Mae/Freddie Mac-standard fidelity bond coverage. Lenders carry heavier balance-sheet requirements; brokers carry the more complex bond-stacking rule.

Do individual Pennsylvania loan originators need their own surety bond?

Only in one specific situation: 7 Pa.C.S. § 6131(f)(4) requires an individual mortgage originator to obtain a personal bond -- tiered $25,000 to $150,000 by the originator's own PA loan volume -- if the person or entity sponsoring them (an entity excepted from licensure under § 6112) does not elect to maintain bond coverage for its originators the way a licensed mortgage lender does. Most originators work under a broker or lender that already carries originator-coverage bonding, so this individual-bond requirement applies to a narrower slice of the market than the broker and lender bonds.

How does DoBS recalculate my Pennsylvania bond amount each year?

For an initial license, your bond tier is set from your own anticipated first-calendar-year PA-secured loan volume. After that, the department resets your required tier annually based on the actual PA dwelling/residential-real-estate volume reported on your periodic report -- there's no fixed renewal cycle independent of production. If your volume crosses a breakpoint (say, from $28M to $34M for a broker's coverage bond), your surety needs to rider the bond up to the new tier; the statute requires 30 days' notice before any cancellation, so plan the increase before your periodic report is due, not after.

Official Pennsylvania Mortgage Regulator Resources

DoBS Non-Depository Licensing Office

Phone: (717) 787-3717

Address: 17 N 2nd St, Suite 1300, Harrisburg, PA 17101

Website: pa.gov/agencies/dobs/non-bank-licensees

NMLS Resource Center: mortgage.nationwidelicensingsystem.org

Legal Authority

Licensing chapter: Mortgage Loan Industry Licensing and Consumer Protection, 7 Pa.C.S. Ch. 61

Broker bond: 7 Pa.C.S. § 6131(e)(1)-(3)

Lender bond: 7 Pa.C.S. § 6131(c)(5)

Originator bond: 7 Pa.C.S. § 6131(f)(4)

View Full Statute Text

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Pennsylvania Mortgage Broker Bond

Why Most Pennsylvania Brokers Are Bonded Twice

Total Broker Bond Exposure

Official Pennsylvania Requirements

The Broker's Originator-Coverage Tiers

Pennsylvania Broker Originator-Coverage Bond -- 7 Pa.C.S. § 6131(e)(3)

Broker, Lender, or Individual Originator -- Three Different Bond Rules

How Pennsylvania Splits Mortgage Bonding by License Type

What Lenders Carry That Brokers Don't

Why the Broker Bond Is More Complex, Not More Expensive

What the $100,000 Bond Actually Costs, by Credit Score

Pennsylvania $100,000 Mortgage Broker Bond -- Annual Premium by Credit Tier

Filing Your Pennsylvania Bond Through NMLS

Confirm Your License Type and Advance-Fee Status

Calculate Your Coverage Tier

Purchase the Bond(s) From a PA-Authorized Surety

File Electronically Through NMLS

Watch the 30-Day Cancellation Clause

Update the Bond When Volume Crosses a Tier

If You're Licensing as a Mortgage Lender Instead

Pennsylvania Mortgage Lender Bond -- 7 Pa.C.S. § 6131(c)(5)

Both Bonds, One Filing

Every Tier Underwritten

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Pennsylvania Mortgage Bond Questions We Get Asked

Official Pennsylvania Mortgage Regulator Resources

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Estimate Your Pennsylvania Mortgage Broker Bond Premium

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