Colonial Surety is authorized by the Nationwide Multistate Licensing System & Registry (NMLS) to write electronic mortgage broker bonds. If you are not registered with the NMLS, please visit the NMLS website.
What is a Massachusetts mortgage broker bond?
A mortgage broker bond is required by the State of Massachusetts as a prerequisite for any licensed mortgage broker to legally conduct business. The bond guarantees that the mortgage broker will operate in accordance with the applicable government rules and regulations.
A mortgage lender is also required by the State of Massachusetts to have a separate surety bond in an amount based on the lender’s mortgage lending business as a condition to obtaining and holding a mortgage lender license.
Who needs this bond?
Mortgage brokers, mortgage lenders, and mortgage loan originators are required by State of Massachusetts statutes to obtain a bond.
What is the amount of the bond?
Mortgage brokers in Massachusetts are required to obtain a surety bond of $75,000. The duration of the bond must be continuous and issued by a bonding or insurance company authorized to do business in Massachusetts. The bond must be executed by an authorized representative for the surety company and the principal prior to submission. The name of the principal on the bond shall match the mortgage broker’s legal name.
Mortgage lenders will have to purchase a surety bond of an amount between $100,000 and $500,000, depending on the volume of their mortgage lending business in Massachusetts. The sum of such bond may be increased by the Commissioner of Banks to any amount as may be necessary, up to $500,000. If a lender’s aggregate annual dollar amount of closed Massachusetts residential loans is less than $50,000,000, a $100,000 bond is required. If the amount is greater than $50,000,000 but less than $250,000,000, a $250,000 bond must be procured. If greater than $250,000,000, a $500,000 surety bond must be purchased.
For more information on Massachusetts’ mortgage broker requirements, visit the State of Massachusetts’ website.
What is the process to obtain the bond?
Colonial offers the direct and digital way to obtain a mortgage broker bond or mortgage lender bond. We are the insurance company — which means no agent, no broker, and no middleman. The steps are easy — get a quote online, fill out your information, and enter your payment method. Your bond will be available instantly. It’s that simple!
What does the bond cost?
Mortgage broker bonds and mortgage lender bonds are reasonably priced and easy to obtain. You may notice that with other insurance agents and middlemen, your premium rate will fluctuate and include additional hidden fees and costs. Colonial offers our lowest possible rate. Premium is based on the amount of the bond required by the State of Massachusetts.
Does it matter where I get the bond?
It is important to understand how surety bonds work, and who is the insurance company issuing your bonds. It is easy to obtain a mortgage broker bond when you deal directly with a quality insurance company licensed to write surety bonds. Colonial is an A (Excellent) rated insurance company by A.M. Best that has been incorporated since 1930. We are NMLS approved, Treasury listed, and licensed and admitted in all U.S. states and territories.