Maryland and Rhode Island Add New Surety Bond Types to NMLS

Category: Industry News
Published: Aug 29, 2019
nmls esb new bond types

 

Many types of professionals in the field of finances and mortgage which need to obtain state licensing undergo the respective procedures via the Nationwide Multistate Licensing System & Registry (NMLS). The licensing criteria are set on the state level. However, the NMLS offers a centralized way to handle licensing applications and documents, which includes providing surety bonds when they are required.

As of 2016, the NMLS introduced a new method for submitting the necessary bonding – the electronic surety bond (ESB) system. Through it, applicants can file in their bonds digitally, instead of providing paper versions. The NMLS has decided to make this move in order to ensure an easier application process for licensees, as well as to gain a better overview and control over the documents provided. 

In the last three years, state authorities have gradually started adopting the ESB. For every state, the level of adoption is different, and applies to various kinds of professionals. 

Most recently, two more states have decided to move the providing of certain surety bond types to the electronic option. As of August 1, 2019, Maryland requires debt settlement service providers to post the bonding requirement digitally via the NMLS. You can check the official bond form for reference. 

The other state that is moving towards greater adoption of ESB is Rhode Island. As of September 1, 2019, student loan servicers will have to provide the required Rhode Island surety bonds online through the NMLS. 

With these additional states joining the ESB, the level of adoption has reached 30 states. For further details, you can refer to the map with the State Adoption of NMLS ESB.

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.

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