What is the California Finance Lender and/or Broker Bond?
The California Finance Lender and/or Broker Bond , protects the clients of lenders and brokers throughout the State of California. It is required by the Department of Business Oversights for all those who wish to obtain a Mortgage Lender License. The amount of the bond must be at least $25,000. It should be furnished by a surety company authorized to conduct business in California. Applicants may refer to Section 1437 of the California Code of Regulations to determine the exact amount of the surety bond.
The application may be done through the NMLS website. In addition to the bond, applicants must also submit the following:
- Financial statements – Unaudited financial statements reflecting the minimum tangible net worth of $250,000, unless licensed as a broker only, then requirement is $50,000
- Business plan – must be described in sufficient detail
- Certificate of Authority/ Good Standing Certificate
- Formation document – for all applicants who are corporations, limited liability companies, limited partnerships or trust
- Management Chart
- Organization chart/description
- Fingerprint cards
- Customer authorization or disclosure of financial records
- Execution Section
- Payment of $400 for the license and NMLS processing fee
How do I obtain a California Finance Lender and/or Broker Bond?
Complete our easy to navigate online application. Within one business day, one of our licensed agents will contact you with a no-obligation quote for your bond (the “premium”). Once any necessary paperwork is signed and the premium payment is processed, your surety bond will be shipped to you via USPS Priority Mail (overnight shipping options also available).
The surety bond experts at Surety Solutions Insurance Services, Inc. (Surety1) are here to help you get bonded quickly and reliably. We work with over a dozen “A” rated surety markets to ensure we find you the lowest rate for your bond. We are also licensed in all 50 states and maintain an A+ rating by the Better Business Bureau.