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 Pennsylvania mortgage broker bond?
A mortgage broker bond, or mortgage originator bond, is required by the State of Pennsylvania 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 Pennsylvania statutes to obtain a bond.
What is the amount of the bond?
Pennsylvania requires a $100,000 surety bond for applicants that accept the advanced fee. A $25,000 surety bond is required if the Principal will originate or originated less than $7,500,000 in mortgage loans secured by Pennsylvania real property in a calendar year; $50,000 if the Principal will originate or originated greater than $7,500,000 but less than $15,000,000 ; $75,000 if the Principal will originate or originated greater than $15,000,000 but less than $30,000,000; $100,000 if the Principal will originate or originated greater than $30,000,000 but less than $50,000,000; $150,000 if the Principal will originate or originated greater than $50,000,000.
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 Pennsylvania.
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.