Surety Bond Information
Effective July 1, 2009, licensees, registrants, and applicants for a broker/processor license must have and maintain a surety bond in a form and terms acceptable and payable to the Department in the amount of $50,000.
Effective July 1, 2009, licensees, registrants, and applicants for a lender license must have and maintain a surety bond in a form and terms acceptable and payable to the Department in the amount of $150,000.
The downloadable list of companies which offer mortgage surety bonds in Georgia is available on our website from the Forms and Applications page. Please note that the Department does not recommend any particular company, but provides the list as a convenience to applicants and licensees. Also remember to check with the Office of the Georgia Insurance and Safety Fire Commissioner to see if any insurer you are considering is authorized to do business in Georgia.
What is a surety bond and why do I need to have one?
A surety bond is a three-party instrument between a surety (insurance company), the licensee, and the Department. The agreement binds the licensee to comply with the terms and conditions of the laws and regulations concerning the issuance of their license. If the licensee is unable to successfully meet those requirements, the surety assumes certain monetary obligations required for performance under that surety bond for the licensee, and ensures that the obligations are met. Such obligations may be those owed to qualifying consumers, other creditors, or the Department.
Can the Department return my bond?
It depends on the circumstances. The Department can only return a bond if the license was never approved. Send a letter to the Department asking for the bond to be sent back to you. However, if the license was approved, the Department cannot return a bond to a licensee or its surety.
Can the Department release the Surety from liability?
The Department cannot execute a general release that discharges a surety from any past, present or future liability under a bond.