Bond or Net Assets Choice
Mortgage brokers: $50K bond OR $25K net assets. Servicers: $25K or $50K bond (mandatory, not an alternative). The bond is often more capital-efficient than the net assets option.
TX-SML + OCCCFinance Code § 156.205Same-Day Issuance
Texas Mortgage Broker Surety Bond
Secure your Texas mortgage broker, lender, or servicer license with a surety bond from Surety One, Inc. — the nationwide leader in mortgage industry surety bonds. Mortgage broker bonds $50,000. Servicer bonds $25,000 or $50,000. Premiums individually determined by credit and financial review.
TX Mortgage Broker / Servicer Bond
$25K – $50K
Broker $50K or $25K net assets • Servicer by volume • Premium based on credit
Mortgage Broker Bond$50,000
Alternative$25K net assets
Servicer (under $25M)$25,000
Servicer (over $25M)$50,000
ObligeeTX-SML Commissioner
TurnaroundSame Day
Get Your Free Quote
Understanding Your Bond
What Is a Texas Mortgage Broker Surety Bond?
A Texas mortgage broker surety bond is a financial guarantee available under Texas Finance Code § 156.205 as an alternative to the $25,000 net assets requirement. Texas is unique in offering this bond-or-net-assets choice — brokers who cannot or prefer not to maintain $25,000 in net assets may instead post a $50,000 surety bond to satisfy the financial responsibility requirement.
Texas mortgage regulation is administered through a dual regulatory structure. The Texas Department of Savings and Mortgage Lending (TX-SML) licenses residential mortgage loan companies under Finance Code Chapter 156, registers mortgage bankers under Chapter 157, and registers servicers under Chapter 158. The Office of Consumer Credit Commissioner (OCCC) licenses MLOs for secondary mortgage loans and home-equity loans under Chapter 180.
For mortgage servicers, a separate bond is mandatory under Finance Code § 158.055, with amounts of $25,000 or $50,000 based on the unpaid principal balance of Texas residential mortgage loans serviced. Texas also maintains a Recovery Fund under Chapter 156, Subchapter F, providing additional consumer protection.
The Three Parties
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PrincipalThe mortgage broker, residential mortgage loan company, or servicer who purchases the bond and must comply with the Texas Finance Code.
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ObligeeThe Commissioner of Savings and Mortgage Lending — the sole payee on the servicer bond and the regulatory authority for mortgage broker compliance.
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SuretySurety One, Inc. — the company that underwrites and issues the bond, guaranteeing the principal's compliance with Texas mortgage licensing law.
Bond vs. Net Assets: Your Choice
Texas is one of few states offering a bond-or-net-assets alternative for mortgage brokers. Posting a $50,000 surety bond requires only a premium payment (a fraction of the bond amount), whereas maintaining $25,000 in net assets ties up capital. For many brokers, the bond is the more capital-efficient choice.
Bond Amount Requirements
Texas Mortgage Bond Amounts by License Type
Texas uses different bond structures for mortgage brokers/companies versus servicers. The broker bond is an alternative to net assets; the servicer bond is mandatory.
Mortgage Broker / Residential Mortgage Loan Company (TX-SML)
| Financial Requirement | Amount | Authority |
|---|---|---|
| Option A: Net assets | $25,000 minimum | Finance Code § 156.205(b) |
| Option B: Surety bond (in lieu of net assets) | $50,000 | Finance Code § 156.205(b) |
Residential Mortgage Loan Servicer (TX-SML)
| TX Servicing Volume (UPB as of Oct 31) | Bond Amount | Authority |
|---|---|---|
| New applicant (never registered or lapsed >12 months) | $25,000 | Finance Code § 158.055; 7 TAC § 58.107 |
| Unpaid principal balance under $25,000,000 | $25,000 | 7 TAC § 58.107 |
| Unpaid principal balance $25,000,000 or more | $50,000 | 7 TAC § 58.107 |
| Servicers of only unimproved or foreclosed properties | $25,000 (flat) | Finance Code § 158.055(c) |
Recovery Fund — Additional Consumer Protection
Texas also maintains a Recovery Fund under Finance Code Chapter 156, Subchapter F, to reimburse mortgage applicants for actual damages from licensed brokers or MLOs. Recovery is limited to $25,000 per transaction and $50,000 per licensee. The Recovery Fund operates in addition to the surety bond requirement. Apply now or call (800) 373-2804.
Texas Licensing Requirements
Key Bond & Licensing Requirements
Texas maintains one of the most complex mortgage regulatory frameworks in the nation, with dual agencies and multiple license types across five Finance Code chapters.
TX-SML + OCCC
TX-SML: 2601 N. Lamar, Suite 201, Austin, TX 78705. Phone: (512) 475-1350 / (877) 276-5550. OCCC: (512) 936-7612. Both use the NMLS for applications and bond filing.
Five Finance Code Chapters
Ch. 156 (mortgage companies), Ch. 157 (mortgage bankers/RMLOs), Ch. 158 (servicers), Ch. 159 (wrap mortgages), Ch. 180 (SAFE Act). Plus 7 TAC Chapters 56–58 (SML rules) and Ch. 2 (OCCC rules).
Net Assets Definition
Net assets = total assets minus total liabilities per GAAP. Assets exempt under state or federal law are excluded. All assets and liabilities are subject to verification by the Commissioner.
NMLS Electronic Filing
Servicer bonds must be filed electronically through the NMLS (ESB). Servicers must recalculate bond amounts before annual renewal (November 1 – December 31). Bond payable to the Commissioner as sole payee.
December 31 Renewal
All Texas mortgage licenses and registrations expire December 31. Reinstatement available through February 28 for lapsed registrations. Servicer bonds must remain active as long as registration is active.
Consumer Protection
What Does This Bond Protect Against?
Texas provides a multi-layered consumer protection system: surety bonds, the Recovery Fund, and administrative enforcement. The bond covers:
Finance Code Violations
Violations of Finance Code Chapters 156, 157, 158, and 180, and all rules and orders adopted under these chapters by the licensee or its employees.
Fraud & Misrepresentation
Acts of fraud, misrepresentation, or deceptive practices in connection with residential mortgage loan transactions on Texas real property.
Recovery Fund
The Recovery Fund provides additional restitution (up to $25K per transaction, $50K per licensee) for actual, out-of-pocket damages from licensed brokers and MLOs — supplementing bond protection.
Administrative Penalties
The Commissioner may impose administrative penalties up to $25,000 per violation for Finance Code violations, plus $1,000 per day for cease-and-desist order violations. Unlicensed activity is a Class B misdemeanor.
How It Works
Get Your Texas Mortgage Broker Bond in 4 Steps
Surety One makes obtaining your Texas mortgage broker or servicer 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. We prepare the bond on the TX-SML prescribed form.
Filed via NMLS
Surety One files your Electronic Surety Bond through the NMLS. Your bond immediately satisfies the licensing requirement for your Texas 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 license type determines the bond ($50K broker or $25K/$50K servicer). 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 Condition | Your overall financial stability, including assets, liabilities, and liquidity. Texas already requires GAAP financial review for net assets. |
| 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. We offer non-standard programs for applicants with impaired or limited credit. Apply now or call (800) 373-2804 for your personalized quote.
Common Questions
Texas Mortgage Broker Bond FAQ
Not strictly. Under Finance Code § 156.205, Texas mortgage brokers must either maintain $25,000 in net assets OR post a $50,000 surety bond. The bond is an alternative to the net assets requirement. However, many brokers prefer the bond because it requires only a premium payment rather than tying up $25,000 in capital. For servicers, the bond is mandatory under § 158.055.
Texas has a dual regulatory structure. The Department of Savings and Mortgage Lending (TX-SML) licenses mortgage companies (Ch. 156), registers mortgage bankers (Ch. 157), and registers servicers (Ch. 158). The Office of Consumer Credit Commissioner (OCCC) licenses MLOs for secondary and home-equity loans (Ch. 180). If you already hold a TX-SML license, you apply to SML for secondary/home-equity as well.
Under Finance Code § 158.055 and 7 TAC § 58.107: $25,000 for new applicants or servicing volume (unpaid principal balance as of October 31) under $25 million; $50,000 for volume of $25 million or more. Servicers of only unimproved or foreclosed properties maintain a flat $25,000 regardless of volume.
Texas maintains a Recovery Fund under Finance Code Chapter 156, Subchapter F, to reimburse mortgage applicants for actual damages. Recovery is limited to $25,000 per transaction (including attorney fees and court costs) and $50,000 per licensee. The Fund supplements — not replaces — the surety bond and operates pursuant to court order.
Net assets are defined as total assets minus total liabilities per GAAP, excluding assets exempt under state or federal law. All assets and liabilities are subject to Commissioner verification. Many brokers prefer the $50,000 bond because it only requires a premium payment (a fraction of $50K), while the net assets option ties up $25,000 in capital on an ongoing basis.
Yes. Surety One declines no application. We offer non-standard surety bond programs for applicants with impaired credit, limited credit history, or other underwriting challenges. Premium rates will be higher, but we work to find terms that fit each applicant's situation.
Servicers must recalculate the minimum bond amount before requesting renewal during the annual renewal period (November 1 – December 31). Volume is calculated based on the total unpaid principal balance of all TX residential mortgage loans serviced as of October 31 of the preceding year. If an increase is required, the new bond must be in place before renewal is processed.
Operating without a required license or registration is a Class B misdemeanor under Finance Code § 156.406. A second or subsequent conviction is punished as a Class A misdemeanor. The Commissioner may also impose administrative penalties up to $25,000 per violation and $1,000 per day for cease-and-desist order violations.
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.
TX Dual-Agency Specialists
Texas's split between TX-SML and OCCC requires a surety that understands both agencies. We issue mortgage broker bonds, servicer bonds, and all TX mortgage industry bond types — filed seamlessly through the NMLS.
Same-Day Issuance
Most Texas mortgage broker and servicer 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. Our non-standard programs provide access to bonding for applicants with damaged or limited credit histories. Everyone gets a fair review.
Multi-State Expertise
Operating in multiple states? We streamline your bonding across all 50 states with a single point of contact, ensuring compliance with each state's unique regulatory structure.
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.
