Three Bond Forms
ML-1: Company $250K. ML-2: Broker $50K. ML-4: Individual MLO $15K/$20K. Flat amounts (except MLO volume-based). 1.8% state surcharge on all bond premiums.
KY Dept. Financial InstitutionsKRS 286.8Same-Day Issuance
Kentucky Mortgage Broker Surety Bond
Secure your Kentucky mortgage broker, loan company, or originator license with a surety bond from Surety One, Inc. — the nationwide leader in mortgage industry surety bonds. Broker bonds $50,000, company bonds $250,000, MLO bonds $15,000–$20,000. Premiums individually determined by credit.
KY Mortgage Broker / Company / MLO Bond
$15K – $250K
Flat rates by license type • Three bond forms • Premium based on credit
Mortgage Loan Broker$50,000
Mortgage Loan Company$250,000
MLO (under $10M volume)$15,000
MLO (over $10M volume)$20,000
ObligeeKY DFI Commissioner
TurnaroundSame Day
Get Your Free Quote
Understanding Your Bond
What Is a Kentucky Mortgage Broker Surety Bond?
A Kentucky mortgage broker surety bond is required by the Kentucky Department of Financial Institutions (DFI), under the Public Protection Cabinet, as a condition of licensure under KRS Chapter 286.8 (the Kentucky Mortgage Loan Company and Mortgage Loan Broker Act) and 808 KAR 12:021.
Kentucky uses three separate bond forms for three distinct license types, each with its own flat bond amount and requirements. Mortgage loan companies face the highest burden: a $250,000 bond, $1,000,000 net worth, and audited CPA financials. Brokers require a $50,000 bond and $100,000 net worth. Individual MLOs need $15,000 or $20,000 depending on volume.
All bonds guarantee compliance with KRS 286.8 and any orders by the Commissioner. Kentucky also imposes a 1.8% state surcharge on all surety bond premiums — a state-imposed fee unique to Kentucky in the series.
The Three Parties
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PrincipalThe mortgage loan broker, mortgage loan company, or individual mortgage loan originator who purchases the bond.
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ObligeeThe Commonwealth of Kentucky, Department of Financial Institutions — the regulatory authority requiring the bond.
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SuretySurety One, Inc. — the company that underwrites and issues the bond, guaranteeing the principal's compliance with Kentucky mortgage licensing law.
Three License Types, Three Bond Forms
Kentucky uses designated bond forms: Form ML-1 (Mortgage Loan Company, $250K), Form ML-2 (Mortgage Loan Broker, $50K), and Form ML-4 (Individual Mortgage Loan Originator, $15K/$20K). The bond name must match exactly the full legal business name on the application.
Bond Amount Requirements
Kentucky Mortgage Bond Amounts by License Type
Kentucky uses flat bond amounts for company licenses and volume-based amounts for individual originators. All bonds are subject to a state-imposed 1.8% surcharge.
| License Type / Bond Form | Bond Amount | Net Worth |
|---|---|---|
| Mortgage Loan Company (Form ML-1) | $250,000 | $1,000,000 |
| Mortgage Loan Broker (Form ML-2) | $50,000 | $100,000 |
| MLO — under $10M volume (Form ML-4) | $15,000 | Credit 600+ |
| MLO — over $10M volume (Form ML-4) | $20,000 | Credit 600+ |
Company vs. Broker: Know the Difference
A mortgage loan company (makes, buys, sells, or services mortgages) requires a $250K bond, $1M net worth, and audited CPA financials. A mortgage loan broker (acts as agent for compensation) requires a $50K bond, $100K net worth, and a documented funding source of $1M. The license you need depends on your activities. Apply now or call (800) 373-2804.
Kentucky Licensing Requirements
Key Bond & Licensing Requirements
Kentucky's three-tier licensing structure with separate bond forms and net worth requirements creates clear distinctions between brokers, companies, and individual originators.
DFI, Public Protection Cabinet
Kentucky DFI, Public Protection Cabinet. Phone: (502) 573-3390. Bonds guarantee compliance with KRS 286.8 and Commissioner's orders. NMLS electronic filing.
KRS 286.8 & 808 KAR 12:021
Kentucky Mortgage Loan Company and Mortgage Loan Broker Act. Administrative regulation 808 KAR 12:021 specifies bond forms and registration requirements for originators.
Substantial Financial Requirements
Company: $1M net worth, audited CPA financials (income statement, balance sheet, cash flows). Broker: $100K net worth, $1M documented funding source, personal financials for 10%+ owners.
HUD Exemption Path
HUD-approved mortgage bankers, servicers, and brokers may register their exemption instead of full licensing. Must originate minimum 12 FHA-insured KY loans annually to maintain exemption.
November 30 Renewal
All entities must renew and pay the annual assessment fee by November 30 each year. Licenses expire December 31. Continuous bonds with 30-day written cancellation notice to DFI. 2+ years managing principal experience.
Consumer Protection
What Does This Bond Protect Against?
The Kentucky mortgage surety bond guarantees compliance with the KRS 286.8 framework and any Commissioner orders. The bond covers:
KRS 286.8 Compliance
Violations of the Kentucky Mortgage Loan Company and Mortgage Loan Broker Act and any orders by the Commissioner of the Department of Financial Institutions.
Consumer Losses
If a licensed broker, company, or originator violates the statutes causing losses to a borrower or consumer, that person may file a claim against the surety bond for compensation.
Financial Responsibility
The bond reinforces the applicant's demonstration of financial responsibility, character, and general fitness such as to command the confidence of the community.
Honest & Fair Operation
The bond warrants that the licensee will operate honestly, fairly, lawfully, and efficiently within the purposes of KRS 286.8 — covering both ethical and legal compliance.
How It Works
Get Your Kentucky Mortgage Broker Bond in 4 Steps
Surety One makes obtaining your Kentucky mortgage broker surety bond fast and straightforward. Most bonds are issued the same business day.
Apply Online
Complete our mortgage bond application online or call us at (800) 373-2804. There's no cost and no obligation.
Get Your Quote
Our underwriters review your application and provide a competitive premium quote, typically within hours. We work with all credit profiles.
Purchase & Sign
Accept your quote, complete the indemnity agreement, and pay your premium (plus 1.8% KY state surcharge). We prepare the appropriate ML form bond.
Filed via NMLS
Surety One files your Electronic Surety Bond through the NMLS. Your bond satisfies the DFI licensing requirement for your Kentucky application.
Understanding Your Premium
How Is My Premium Determined?
Your premium — the actual amount you pay — is a percentage of your required bond amount, plus a 1.8% Kentucky state surcharge. You do not pay the full bond amount. Your rate is individually determined.
| Underwriting Factor | How It Affects Your Premium |
|---|---|
| Required Bond Amount | Your license type determines the bond ($15K–$250K). Higher amounts result in higher premiums. |
| Personal Credit Score | Your FICO score is a primary factor. KY uses 600+ as the financial responsibility threshold for MLO registration. |
| Financial Statements | Companies: audited CPA financials required. Brokers: personal financials for each 10%+ owner. MLOs: credit-based. |
| Industry Experience | KY requires the managing principal to have 2+ years of mortgage industry experience. |
| KY State Surcharge | All Kentucky surety bond premiums are subject to a state-imposed 1.8% surcharge, added to the premium. |
Every Applicant Receives a Personalized Quote
Because premiums are individually determined, the only way to know your exact cost is to apply. Surety One provides free, no-obligation quotes — and we decline no application. We offer non-standard programs for applicants with impaired or limited credit. Apply now or call (800) 373-2804.
Common Questions
Kentucky Mortgage Broker Bond FAQ
KY broker bonds are $50,000 flat. Company bonds are $250,000 flat. Individual MLO bonds are $15,000 (under $10M) or $20,000 (over $10M). All premiums include a 1.8% KY state surcharge. Your premium is individually determined by credit and underwriting review. Apply for a free, no-obligation quote.
A mortgage loan broker receives compensation for serving as an agent in residential mortgage transactions (bond: $50K, net worth: $100K). A mortgage loan company makes, buys, sells, or services residential mortgages (bond: $250K, net worth: $1M, audited CPA financials). Companies carry substantially higher requirements.
All MLOs must be covered by a surety bond for their entire registration period, either through their employer's bond or independently. Individual MLO bonds are $15,000 (under $10M annual volume) or $20,000 (over $10M). Even out-of-state loan officers assisting Kentucky clients must register with DFI.
HUD-approved mortgage bankers, servicers, and brokers may register their exemption with DFI instead of obtaining a full license. HUD exemptions expire annually on December 31. To maintain the exemption, entities must originate at least 12 FHA-insured mortgage loans on Kentucky properties annually.
Companies: $1M net worth, audited CPA financials within 90 days of fiscal year end (income statement, balance sheet, cash flows). Brokers: $100K net worth, $1M documented funding source, CPA financial statement, personal financials for each 10%+ owner. MLOs: credit score of 600+ meets the financial responsibility requirement.
Yes. Surety One declines no application. Note that KY DFI uses a 600 credit score as the threshold for MLO financial responsibility — scores below 600 may require additional documentation. Our non-standard programs are available for all bond types regardless of credit challenges.
All entities must renew and pay the annual assessment fee by November 30. Licenses expire December 31. The assessment fee covers renewal for the principal office, all branches, and examination costs. Bonds are continuous with 30-day written cancellation notice to DFI. MLOs require 8 hours annual continuing education (1 hour KY-specific).
The Surety One Advantage
Why Choose Surety One, Inc.?
Surety One is a national surety leader specializing in the bonding needs of mortgage professionals across all 50 states, Puerto Rico, and the U.S. Virgin Islands.
KY Multi-Bond Specialists
Kentucky's three bond forms and distinct license tiers demand experienced surety underwriting. We issue all KY mortgage bond types — company ($250K), broker ($50K), and individual MLO ($15K/$20K) bonds.
Same-Day Issuance
Most Kentucky mortgage broker bonds are issued the same business day. Our 24/7/365 underwriting team provides guaranteed same-day feedback on every submission.
A+ BBB Rated
Surety One carries an A+ rating with the Better Business Bureau in both our U.S. and Puerto Rico offices, reflecting our commitment to client satisfaction and ethical practices.
All Credit Accepted
We decline no application. Whether you need a $15,000 MLO bond or a $250,000 company bond, our non-standard programs provide access to bonding for all credit profiles.
Multi-State Expertise
Operating across the Southeast? We streamline your bonding across all 50 states with a single point of contact, ensuring compliance with each state's unique requirements.
Free Quotes, No Obligation
Application review and quoting are always free. There is no obligation to purchase. Contact us by phone, email, or live chat to explore your options.
