Surety Bond Information

Licensees, registrants, and applicants for a mortgage 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.

Licensees, registrants, and applicants for a mortgage 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.

Implementation of Law Changes in House Bill 143

House Bill 143 increases the minimum bond coverage to $150,000 for a licensed or registered mortgage broker and $250,000 for a licensed or registered mortgage lender.  The increase in minimum bond coverage for brokers and lenders will be enforced on December 31, 2017, which coincides with the deadline to convert company surety bonds to an electronic format through NMLS (see ESB information below).

All licensed and registered mortgage brokers and lenders must have converted their paper bonds AND provided an electronic surety bond rider through the NMLS by December 31, 2017.  Licensees that fail to convert their bonds or fail to meet the minimum surety requirements will be subject to expiration.

Electronic Surety Bonds (ESB)

Electronic surety bonds (ESB) for mortgage company license/registration types were available in NMLS starting January 23, 2017.

New company license applications submitted after January 23, 2017 are required to meet all surety bond requirements by completing the electronic surety bond process. See the ESB Adoption Map and Table for more information.

Companies are required to convert their existing surety bond to NMLS via the submission of an ESB by December 31, 2017. See the GA ESB Conversion Plan for more information.

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?

The Department cannot return a bond to a licensee or its surety.  The Department, however, will return a bond of a license applicant if the application were never approved.

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.