California Residential Mortgage Servicer Surety Bond

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Bond Penalty: $50,000 to $200,000 on volume

Surety One, Inc., we specializes in providing fast, reliable surety bonding solutions for financial services and mortgage professionals. If you are licensed or seeking licensure under the California Residential Mortgage Lending Act (CRMLA), obtaining a Residential Mortgage Lender or Servicer Surety Bond is a mandatory requirement enforced by the California Department of Financial Protection and Innovation (DFPI). This bond is a key component of the licensing process for any company that wishes to engage in mortgage lending or servicing in the state.

The purpose of the mortgage servicer bond is to ensure compliance with all provisions of the CRMLA and any related rules or regulations established by the Commissioner of Financial Protection and Innovation. Specifically, it guarantees that mortgage lenders and servicers will conduct their business honestly, apply all funds appropriately, and fulfill their legal and financial obligations. Should a licensee fail in these duties, the bond provides financial recourse to the state or to individuals harmed by the licensee’s misconduct.

Under California Financial Code Section 50205, the required bond amount is $50,000, however larger bond penalties are required for servicing volume in excess of fifty million dollars. The state's formula is as follows:

Surety Bond Requirements

Aggregate Loans Bond Amount
0 - $50,000,000 $50,000
$50,000,001 – $500,000,000 $100,000
Over $500,000,001 $200,000

The bond must remain active throughout the duration of the license. It can be claimed upon by the Commissioner or by private individuals who sustain damages as a result of the licensee’s actions. The bond is issued in the name of the Commissioner and is subject to cancellation in accordance with the California Code of Civil Procedure. Specific notice requirements must be met in the event of cancellation or legal action against the bond.

Surety One, Inc. offers this bond with quick approval processes and highly competitive rates for well-qualified applicants, with multi-year options and discounts available. We also offer underwriting support for applicants with credit challenges, recognizing that access to surety capacity is critical for mortgage professionals. Our streamlined process allows for same-day issuance and electronic delivery (NMLS posting), ensuring compliance deadlines without delay.

Obtaining your California mortgage lender or servicer bond through Surety One, Inc. is simple. After completing our brief application, you'll receive a quote within hours. With more than 30 years of experience in the surety industry, Surety One, Inc. has become a trusted name for mortgage license bonds in all fifty states, Puerto Rico and U.S. Virgin Islands. We also offer the fidelity bond coverages required in many states. For questions or assistance with your California Residential Mortgage Lender or Servicer Bond, contact us at (800) 373-2804 or email Underwriting@SuretyOne.com or click here for a live chat with an underwriter.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

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