Maryland Mortgage Broker Bond$50K-$250K | 3 Tiers

Maryland uses a five-tier system based on the aggregate principal amount of loans secured by Maryland properties. At initial application and each annual renewal, you submit a sworn statement of loan volume. If you have Maryland lending history in the prior 36 months, your bond is based on Maryland volume. If you have lending history elsewhere but not in Maryland, the bond is based on out-of-state volume. The five tiers are: $50K (up to $5M), $100K ($5-25M), $250K ($25-100M), $500K ($100-250M), and $750K (over $250M).

If you are filing five or more original or renewal applications at the same time, Maryland allows a blanket surety bond of $750,000 that covers all licensed offices. This can be more cost-effective than maintaining separate bonds for each location. The blanket bond must be approved by the Commissioner of Financial Regulation. This option is typically used by larger multi-branch operations.

Costs vary by tier and credit. For a $50,000 bond with excellent credit (750+), expect $500-$1,500/year. A $250,000 bond costs $2,500-$7,500 with good credit. The maximum $750,000 blanket bond runs $7,500-$22,500 with good credit (1-3%). Fair credit applicants pay 5-10% of the bond amount. Maryland's wide tier range means your annual cost depends heavily on which volume tier you fall into.

Yes. Maryland has separate bond tier structures for lenders and servicers. Lender tiers are based on origination volume: $50K (up to $5M), $100K ($5-25M), $250K ($25-100M), $500K ($100-250M), $750K (over $250M). Servicer tiers are based on the total Maryland servicing portfolio: $50K (up to $10M), $100K ($10-100M), $250K ($100M-1B), $500K ($1-5B), $750K (over $5B). The thresholds are significantly higher for servicers since servicing portfolios are larger than origination volumes.

Your bond amount is reassessed at each annual renewal based on your sworn volume statement. If your volume moves to a higher tier, you must increase your bond within 30 days of the renewal submission. If your volume decreases, you may qualify for a lower bond amount at renewal. The Commissioner determines the amount based on the volume data you provide, using the prior 36 months of lending activity.

The bond runs to the Commissioner of Financial Regulation as obligee, but it is specifically for the benefit of mortgage loan borrowers damaged by violations committed by the licensee. Borrowers who suffer losses due to your non-compliance with the Maryland Mortgage Lender Law can proceed against the bond to recover their damages, up to the penal sum of the bond.

It depends. If you have no mortgage lending history anywhere in the prior 36 months, you may qualify for the minimum $50,000 bond. However, if you have lending experience in other states but not Maryland, the Commissioner may set your bond based on your out-of-state volume. Your sworn statement at application determines the initial amount.

Upload your bond electronically through your NMLS account. Maryland accepts NMLS electronic filing through the Office of Financial Regulation (part of the Department of Labor). Include the bond with your application or renewal along with your sworn volume statement. We provide bonds in the correct NMLS format and can assist with filing.