Tennessee Mortgage Broker Bond— Initial $90K/$200K | Renewal Adjusted

Tennessee uses a two-phase bond structure. Per TDFI Compliance Bulletin C-10-1, brokers need a fixed $90,000 and lenders a fixed $200,000 at licensing, and that fixed amount also applies to a renewal filed in the year the license was issued or the following year. For later renewals, bond amounts are recalculated based on actual Tennessee residential mortgage loan volume from the preceding calendar year, so a renewal bond could be lower or higher than the initial bond depending on production. A broker who originated under $10M, for example, could drop to a $45,000 renewal bond.

Per Rule 0180-17-.08, mortgage loan brokers on renewal have three tiers based on the dollar amount of Tennessee residential mortgage loans originated in the preceding calendar year: $45,000 (under $10M), $90,000 ($10M-$50M), and $135,000 ($50M or more). This means brokers who originated less than $10M can actually reduce their bond from the initial $90,000 to $45,000 at renewal -- a significant cost savings.

Mortgage lenders on renewal have three tiers: $100,000 (under $10M in TN loans), $200,000 ($10M-$50M), and $300,000 ($50M or more). Similar to brokers, lenders with lower volume can reduce their bond at renewal: a lender originating under $10M drops from the initial $200,000 to $100,000. However, high-volume lenders ($50M+) see their bond increase from $200,000 to $300,000.

For the $90,000 initial broker bond with excellent credit (750+), expect $900-$2,700/year. The $200,000 initial lender bond costs $2,000-$6,000. At a volume-based renewal, costs may decrease significantly if your volume qualifies for a lower tier -- a $45,000 renewal bond costs only $450-$1,350 with excellent credit. This two-phase structure means Tennessee can be more affordable long-term than the initial cost suggests.

Per TCA 45-13-204, the bond must be maintained for not less than 24 months following the expiration, revocation, suspension, or surrender of the license. This extended tail period ensures consumers can file claims for violations that occurred while you were licensed, even after you stop operating. This is longer than most states require. Factor this into your exit planning -- you cannot simply cancel the bond when you surrender your license.

Yes. Under TCA 45-13-204, the surety bond must provide coverage for each mortgage loan originator sponsored by the licensee. This means the company bond covers all your MLOs without requiring separate individual MLO bonds (unlike Massachusetts, which requires individual $25K MLO bonds). The bond amount reflects the overall coverage needed for the company and all its originators.

Yes. The initial $90,000 broker bond at 10% costs $9,000/year with challenged credit. However, if you qualify for the $45,000 renewal tier at a volume-based renewal, that drops to $4,500/year even at 10%. Higher rates apply but approval is possible with solid financials and clean regulatory history. Strong financial statements and industry experience help offset credit concerns.

Upload your bond electronically through your NMLS account for the Tennessee Department of Financial Institutions (TDFI) to review. At initial licensing, you submit the statutory initial bond amount. At a later, volume-based renewal, you submit the volume-adjusted bond based on the preceding year's Tennessee production data. We provide quotes from licensed carriers and can help you with both initial and renewal filings.