A California finance broker bond (a/k/a "finance lender bond") is one of the requirements of being granted a license by the California Department of Financial Protection &Innovation (DFPI). Per the Department, "The definition of “broker” includes any person engaged in the business of negotiating or performing any act as broker in connection with loans made by a finance lender. " A licensee must file an annual report by March 15th of each year from which an "annual assessment" is determined. This volume report is important to determining sufficiency of the surety bond and otbroker compliance measures.
The California finance broker bond must be issued by a surety company licensed in the states and written in a minimum amount of twenty five thousand dollars ($25,000). Per the Department's directive, "The Commissioner of the DFPI may require a higher broker bond amount from a license candidate that makes or arranges residential mortgage loans, based on the dollar amount of residential mortgage loans originated and number of mortgage loan originators employed by that licensee. The surety bond amounts will be based on the aggregate dollar amount of residential mortgage loans originated (MLOs) by the licensee in the preceding year"
|Aggregate Loans||Bond Amount|
|0 - $1,000,000||$25,000|
|$1,000,001 - $50,000,000||$50,000|
|$50,000,001 - $500,000,000||$100,000|
Finance brokers that do NOT engage in residential lending operations are not obligated to adhere to the increase formulae. The California finance broker bond form language guarantees that the licensee will conform to and abide by the provisions of the California Financing Law, all rules and regulations lawfully made by the Commissioner, and honestly and faithfully apply all funds received to those to whom they are due. The California finance lender bond allows for third party claims as well as claims from the state.
California surety bond leader, Surety One, Inc. is a specialist in the bonding needs of finance brokers, loan originators and loan servicers, including student loan servicers. We offer both the surety bonds and fidelity bonds needed by credit service professionals in all fifty states, Puerto Rico and the U.S. Virgin Islands. Questions about this surety bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat. A California finance broker bond is quick, easy and delivered in hours.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.