Mortgage Servicer Bonds

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How Do I Get Bonded?

Mortgage Servicer Bonds Explained

In a number of states, if you want to launch a mortgage loan servicing business, you need to obtain a mortgage servicer bond. This is a prerequisite to getting licensed and thus being allowed to work legally.

This is a type of license bond which serves as an extra layer of protection for the state in which you operate and for your customers. The mortgage servicer bond ensures your legal compliance with applicable rules and regulations.

Your bond is, in practical terms, a contractual agreement between three entities. Your mortgage servicing business is the principal. The state licensing authority is the obligee that requires it. The surety is the third party, which provides you with the bonding.

Questions about Mortgage Servicer Bonds

In which states do I have to post a mortgage servicer bond?

In some states, mortgage servicers have to get licensed under a broker or mortgage professional license, while in others, there is a separate mortgage servicer license type. Obtaining a surety bond is a part of the common requirements you have to meet.

New York

In the state of New York, you have to provide a surety bond to the Department of Financial Services prior to launching your loan servicing company.


The Hawaii Department of Commerce and Consumer Affairs requires mortgage loan servicers to obtain a $100,000 surety bond.


Loan servicers in Oregon have to provide a $50,000 bond to the state Division of Financial Regulation.


Nevada mortgage servicers are required to obtain a bond between $100,000 and $300,000, depending on the work volume. The licensing authority is the Nevada Division of Mortgage Lending.


The Vermont Department of Financial Regulation imposes a $100,000 surety bond requirement for mortgage servicers.

New Hampshire

In New Hampshire, servicers have to obtain a $100,000 and present it to the state Banking Department.


Connecticut mortgage servicers need a $100,000 bond per location.


The Montana Department of Administration, Division of Banking and Financial Institutions requires mortgage servicers to post a $100,000 surety bond.


In order to obtain a Pennsylvania mortgage servicer license from the Department of Banking and Securities, servicers have to provide a $500,000 surety bond.

What is the surety bond cost?

Every state sets individually the bond amount that mortgage servicers have to obtain. The surety bond cost that you should pay is based on this bond amount. However, it is only a small percentage of it, referred to as the bond premium.

The bond price is formulated after careful consideration of your personal and business finances. The surety that you apply with needs to examine factors such as your personal credit score, company financials, liquidity and assets, and even professional experience. That’s how it can assess the level of bonding risk involved. Applicants with a solid profile typically get rates between 0.5% to 5%.

Mortgage Servicer Surety Bond Cost Based on Credit Score
State Surety bond amount Above 700 Between 650-699 Between 600-649 Below 599
Oregon $50,000 $250-$625 $375-$750 $1,000-$2,500 $2,500-$5,000
Connecticut, Hawaii, Montana, Vermont and New Hampshire $100,000 $500-$1,250 $750-$1,500 $2,000-$5,000 $5,000-$10,000
Nevada $100,000 to $300,000 $500-$1,250 to $1,500-$3,750 $750-$1,500 to $2,250-$4,500 $2,000-$5,000 to $6,000-$15,000 $5,000-$10,000 to $15,000-$30,000

* This table provides a ballpark estimate of potential bond costs. Bond pricing can fluctuate over time due to a number of factors. For exact pricing, please complete an application.

Is it possible to get bonded with bad credit?

Yes, even if your finances are not perfect, you can obtain the bond that you need via our Bad Credit Surety Bonds program. It is designed to serve applicants with issues like low credit scores, tax liens, bankruptcies, and civil judgements.

Since the bonding risk is higher, the rates that you can expect are in the range of 5% and 10%. As we partner with a number of A-rated, T-listed surety companies, we have access to exclusive programs, which ensures you get a top rate with us.

How Do I Get Bonded?

Need more details about the bonding process? Don’t miss out our in-depth How to Get Bonded page. It is an extensive resource on the topic.

Lance Surety Bonds’ specialists are available to answer your queries and help you with your bond application. Just call us at (877) 514-5146.

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About Us

Lance Surety Bonds
Lance Surety Bond Associates, Inc. is a Pennsylvania-based surety bond agency that offers bonding at competitive rates in all 50 states. Established in 2010, our company has grown to become one of the top online bond producers in the country. Working exclusively with A-rated and T-listed bonding companies gives us the confidence to offer a 100% money-back guarantee. read more

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