Dual 5-Tier Schedule
Lending tiers: $50K / $100K / $250K / $500K / $750K. Servicing tiers: $50K / $100K / $250K / $500K / $750K. Multi-activity licensees use the higher requirement. Blanket $750K bond for 5+ branches.
MD Office of Financial RegulationMMLL § 11-508Same-Day Issuance
Maryland Mortgage Lender Surety Bond
Secure your Maryland mortgage lender, broker, or servicer license with a surety bond from Surety One, Inc. — the nationwide leader in mortgage industry surety bonds. Bonds from $50,000 to $750,000 based on MD lending volume. Premiums individually determined by credit and financial review.
MD Mortgage Lender Bond
$50K – $750K
By MD lending volume & servicing portfolio • 90-day cancellation • Premium based on credit
Broker / ≤$5M Lending$50,000
$25M – $100M Lending$250,000
Over $250M Lending$750,000
PremiumBased on Credit
ObligeeMD Commissioner OFR
TurnaroundSame Day
Get Your Free Quote
Understanding Your Bond
What Is a Maryland Mortgage Lender Surety Bond?
A Maryland mortgage lender surety bond is a three-party agreement required by the Maryland Department of Labor, Office of the Commissioner of Financial Regulation (OFR), as a condition of licensure under the Maryland Mortgage Lender Law (MMLL), Financial Institutions Article § 11-508. Maryland defines "mortgage lender" broadly to include any person who is a mortgage broker, makes a mortgage loan, or is a mortgage servicer.
Maryland uses a Commissioner-determined bond amount system with separate five-tier schedules for lending volume and servicing portfolio, ranging from $50,000 to $750,000. The Commissioner considers the nature and volume of business, financial condition, quality of operations and management, and potential harm to consumers when setting the amount.
Maryland is distinguished by the longest cancellation notice period of any state at 90 days, and by its pro rata distribution mechanism — if claims exceed the bond amount, the surety pays the penal sum to the Commissioner for pro rata distribution to claimants. The bond continues for 3 years after the later of cancellation or license termination.
The Three Parties
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PrincipalThe mortgage lender, broker, or servicer who purchases the bond and must comply with the Maryland Mortgage Lender Law and all OFR regulations.
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ObligeeThe Commissioner of Financial Regulation — the sole obligee on the bond, holding it for the benefit of the State and injured mortgage loan borrowers.
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SuretySurety One, Inc. — the company that underwrites and issues the bond, guaranteeing the principal's compliance with Maryland mortgage lending law.
Broadest Bond Range in the Series
Maryland's $50,000 to $750,000 bond range is the widest of any state in our series. The Commissioner can also approve a blanket bond of $750,000 for licensees with five or more branch locations, covering all locations under a single bond. Apply now for a quote.
Bond Amount Schedule
Maryland Mortgage Bond — Dual Five-Tier Schedule
If you engage in both lending and servicing, your bond must satisfy the higher applicable requirement. Bond amounts are based on MD-only activity from the prior 12 months.
Mortgage Lending Volume (Prior 12 Months)
| MD Lending Volume | Bond Amount |
|---|---|
| Broker only, or lent $5,000,000 or less | $50,000 |
| $5,000,001 – $25,000,000 | $100,000 |
| $25,000,001 – $100,000,000 | $250,000 |
| $100,000,001 – $250,000,000 | $500,000 |
| Over $250,000,000 | $750,000 |
Mortgage Servicing Portfolio
| Total MD Servicing Portfolio (UPB) | Bond Amount |
|---|---|
| $10,000,000 or less | $50,000 |
| $10,000,001 – $100,000,000 | $100,000 |
| $100,000,001 – $1,000,000,000 | $250,000 |
| $1,000,000,001 – $5,000,000,000 | $500,000 |
| Over $5,000,000,000 | $750,000 |
90-Day Cancellation & 3-Year Tail
Maryland requires 90 days' written notice to the Commissioner before a bond cancellation is effective — the longest cancellation period of any state. The bond then continues for 3 years after the later of the cancellation date or the date the license expires, is revoked, suspended, or surrendered. Apply now or call (800) 373-2804.
Maryland Licensing Requirements
Key Bond & Licensing Requirements
Maryland's mortgage regulatory framework features the widest bond range, longest cancellation notice, and a sophisticated pro rata claims distribution system.
Office of Financial Regulation
The obligee is the MD Commissioner of Financial Regulation, under the Department of Labor. Bond runs to the Commissioner for the benefit of the State and injured borrowers.
MMLL § 11-508
Financial Institutions Article § 11-508. Licensing under § 11-504. Commissioner's authority under § 11-503. Implementing regulations in COMAR 09.03.06. Bond surety law changes enacted in SB 924 (2017).
Net Worth by Volume
Under $1M lending: $25K net worth. $1M–$5M: $50K. $5M–$10M: $100K. Over $10M: $250K. Audited CPA financials required within 90 days of fiscal year end with balance sheet, income statement, and cash flows.
NMLS Electronic Filing
All bonds are filed electronically through the NMLS. No branch licenses since July 2023 — licensees upload a list of business locations. Paper licenses eliminated in 2021; NMLS record is the license.
December 17 Submission Deadline
Renewal applications not submitted by December 17 may require cessation of MD business. Licenses expire December 31. Trust account or irrevocable LOC alternative available for new applicants with Commissioner approval.
Consumer Protection
What Does This Bond Protect Against?
The Maryland mortgage lender surety bond provides comprehensive consumer protection through a unique pro rata distribution mechanism. The bond covers:
MMLL Violations
Any violation by the licensee of Maryland law or regulation governing the activities of mortgage lenders, including the full scope of the Maryland Mortgage Lender Law and COMAR 09.03.06.
Borrower Damages
Any mortgage loan borrower who has been damaged by a violation committed by the licensee. Claims may be filed directly with the surety without requiring an administrative enforcement action by the Commissioner.
Pro Rata Distribution
If total claims exceed the bond amount, the surety pays the penal sum to the Commissioner for pro rata distribution to all claimants — ensuring equitable treatment when the bond is exhausted.
Penalty Recovery
Administrative penalties imposed under § 2-115(b) or § 11-517(c) may be collected from the bond proceeds, providing direct regulatory enforcement funding through the bond.
How It Works
Get Your Maryland Mortgage Lender Bond in 4 Steps
Surety One makes obtaining your Maryland mortgage lender surety bond fast and straightforward. Most bonds are issued the same business day.
Apply Online
Complete our mortgage lender 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. We prepare the bond in the form approved by the Commissioner.
Filed via NMLS
Surety One files your Electronic Surety Bond through the NMLS. Your bond immediately satisfies the licensing requirement for your Maryland application.
Understanding Your Premium
How Is My Premium Determined?
Your premium — the actual amount you pay — is a percentage of your required bond amount. You do not pay the full bond amount. Your rate is individually determined through underwriting review.
| Underwriting Factor | How It Affects Your Premium |
|---|---|
| Required Bond Amount | Your MD lending volume and servicing portfolio determine the tier ($50K–$750K). Higher amounts result in higher premiums. |
| Personal Credit Score | Your FICO score is a primary factor. Stronger credit profiles generally qualify for lower premium rates. |
| Financial Statements | Bond amounts over $50,000 typically require personal and business financial statements. Maryland already requires audited CPA financials for licensing. |
| Industry Experience | Your professional history in the mortgage industry may be considered as part of the risk assessment. |
| Claims History | Any prior surety bond claims or regulatory actions may influence the terms offered. |
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. Given Maryland's bond amounts reaching $750,000, our non-standard programs are especially valuable. Apply now or call (800) 373-2804.
Common Questions
Maryland Mortgage Lender Bond FAQ
Maryland mortgage lender bonds range from $50,000 to $750,000 across five tiers based on MD lending volume and servicing portfolio. Brokers or lenders at $5M or less start at $50,000. Your premium is a percentage of the required amount, individually determined by credit and underwriting review. Apply for a free, no-obligation quote from Surety One.
The Maryland Department of Labor, Office of the Commissioner of Financial Regulation (OFR), requires the bond under the Maryland Mortgage Lender Law, Financial Institutions Article § 11-508. Maryland defines "mortgage lender" broadly to include brokers, lenders, and servicers. The bond is filed electronically through the NMLS.
Maryland requires 90 days' written notice to the Commissioner before a bond cancellation is effective — the longest cancellation notice period of any state. The bond then continues for 3 years after the later of the cancellation date or the date the license terminates. This ensures extended consumer protection.
Yes, subject to Commissioner approval. New license applicants may satisfy the bonding requirement by establishing a trust account with or obtaining an irrevocable letter of credit from an FDIC-insured financial institution in an amount equal to the required bond under § 11-508(d).
If total claims exceed the penal sum, the surety pays the bond amount to the Commissioner for pro rata distribution to all claimants, and is then relieved of liability. The bond obligation is considered one continuous obligation regardless of increases or decreases — it may not be aggregated or cumulated across time periods.
Yes. Surety One declines no application. Given Maryland's bond amounts reaching $750,000, our non-standard programs are especially valuable for applicants who may face challenges with other surety providers. Premium rates will be higher, but we work to find terms that fit each applicant's situation.
No. Effective July 1, 2023, the OFR ceased issuing, maintaining, and renewing individual branch licenses. Instead, licensees are required to upload a list of all business locations (excluding the principal executive office) in the NMLS. Maryland also eliminated paper licenses in 2021 — your NMLS record is your license.
Renewal applications not submitted by December 17 may require cessation of Maryland business. If the Commissioner hasn't acted on a renewal submitted after December 17 by December 31, the license expires. Licenses expire December 31 annually. Bonds must remain active throughout the licensing term.
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.
MD High-Amount Specialists
Maryland's bond requirements reach $750,000 — the highest in our series. Our underwriters specialize in high-amount mortgage lender bonds and navigate the OFR's Commissioner-determined bond amount process with expertise.
Same-Day Issuance
Most Maryland mortgage lender 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. Given MD's bond amounts reaching $750,000, our non-standard programs are critical for applicants who may face challenges with other surety providers.
Multi-State Expertise
Operating in the D.C. corridor? We streamline your bonding across Maryland, Virginia, D.C., and all 50 states with a single point of contact.
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.
