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 Maryland mortgage broker bond?
A mortgage broker bond is required by the State of Maryland 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.
Who needs this bond?
Mortgage brokers, mortgage lenders, and mortgage loan originators are required by State of Maryland statutes to obtain a bond.
What is the amount of the bond?
The amount of the surety bond required by the State of Maryland is determined by the applicant’s volume of mortgage business within the past 12 months.
If the volume of mortgage business in the past 12 months is less than $3,000,000, a $50,000 minimum is required. If the volume is between $3,000,000 and $10,000,000, a $100,000 minimum bond is required. If the volume is greater than $10,000,000, a $150,000 minimum bond is required.
Subject to approval of the Office of Commissioner of Financial Regulation, if any applicant files five or more applications at the same time, the applicant may provide a blanket surety bond for all licensed offices in the amount of $750,000.
For more information on Maryland’s mortgage broker requirements, visit the NMLS website.
What is the process to obtain the bond?
Colonial offers the direct and digital way to obtain a mortgage broker 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?
A mortgage broker bond is 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 Maryland Department of Labor, Licensing, and Regulation.
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.