Surety Bond Encyclopedia

Mortgage Lender (NMLS) Bond - Statewide in Connecticut

Brief Summary

The $100,000 figure you see quoted most often is only the starting point. Connecticut raises the bond to $200,000, $300,000 or $500,000 as your residential loan volume grows, and the bond has to stay in force for your license to stay active. We issue the bond electronically so it can be filed through NMLS with your license record.

Connecticut requires every licensed mortgage lender to file a surety bond with the Banking Commissioner under CGS 36a-492. A new applicant files a $100,000 bond. After that the penal sum is set by the aggregate dollar amount of closed residential mortgage loans for the preceding four quarters ending June 30, with tiers of $100,000, $200,000, $300,000 and $500,000. One bond covers the main office, every branch and every sponsored mortgage loan originator, and it is filed electronically through NMLS.

We can help with all Connecticut bonds!

How to Apply for a Mortgage Lender (NMLS) Bond:

Work out your tier from closed residential mortgage loan volume for the four quarters ending June 30. New applicants start at $100,000.
Have the legal entity name and NMLS ID exactly as they appear on your NMLS company record.
Owner or principal details and financial information for underwriting.
Complete the bond application and review the quoted premium.
Pay the premium so the bond can be issued electronically and filed through NMLS to the Connecticut Department of Banking.
Increase the bond if the commissioner requires a higher penal sum after your volume changes.

Detailed Information About the Connecticut Mortgage Lender (NMLS) Bond:

Which tier you are in

The amount is not flat. CGS 36a-492(d) sets the penal sum for a mortgage lender or mortgage correspondent lender by the aggregate dollar amount of all closed residential mortgage loans the licensee originated, brokered or made during the preceding four quarters ending June 30.

Less than $30 million: $100,000
$30 million to less than $100 million: $200,000
$100 million to less than $250 million: $300,000
$250 million or more: $500,000

An applicant for an initial mortgage lender license files a $100,000 bond with its main office application. The commissioner may require a change in the penal sum at any time if loan volume warrants it, so a lender that crosses a threshold should expect to increase the bond.

What the bond covers

The bond must be in a form approved by the Attorney General. It is conditioned on the lender faithfully performing its written agreements with borrowers, accounting for all funds received, and conducting business in line with the Connecticut mortgage licensing statutes. Borrowers and the commissioner can make a claim against it. It also covers every mortgage loan originator the lender sponsors.

One bond, filed on NMLS

The Department of Banking's October 28, 2021 order on electronic bonds requires mortgage lenders to file surety bonds electronically through NMLS. The same order waived the old branch office addendum, so a single bond in the amount set by 36a-492 covers all licensed locations.

Cancellation suspends the license

The surety must give the lender and the commissioner 30 days written notice before cancelling. When the cancellation takes effect, the commissioner automatically suspends the licenses unless the bond is reinstated before that date.

Servicing loans needs a second filing

A licensed lender that also services residential mortgage loans must hold a separate Exempt Mortgage Servicer registration on NMLS as of October 1, 2025, with its own supplemental servicer surety bond, fidelity bond and errors and omissions coverage under CGS 36a-719c. The lender bond on this page does not satisfy that requirement.

License fees and renewal

Under CGS 36a-491 the mortgage lender license fee is $1,000, plus NMLS charges. Licenses expire December 31 and renewals are filed between November 1 and December 31.

Eligibility and Requirements for a Connecticut Mortgage Lender (NMLS) Bond:

Connecticut Banking Commissioner as obligee under CGS 36a-492.
Penal sum of $100,000, $200,000, $300,000 or $500,000 depending on loan volume.
Bond form approved by the Attorney General, issued as an electronic surety bond on NMLS.
A single bond covering the main office, all branches and all sponsored mortgage loan originators.
Continuous coverage. Cancellation takes 30 days written notice and leads to automatic license suspension.
Premium set by the surety after reviewing credit, financial statements and loan volume.

Connecticut Mortgage Lender (NMLS) Bond FAQs:

How much bond does a Connecticut mortgage lender need?

A new applicant files $100,000. After that it depends on closed residential mortgage loan volume for the preceding four quarters ending June 30: under $30 million is $100,000, $30 million to under $100 million is $200,000, $100 million to under $250 million is $300,000, and $250 million or more is $500,000. The source is CGS 36a-492(d).

Do I need a separate bond for each branch?

No. The Department of Banking's October 28, 2021 electronic bond order waived the branch office addendum. One bond in the amount set by 36a-492 covers all licensed locations.

Does the bond cover my loan originators?

Yes. Under CGS 36a-492 the lender's bond covers every mortgage loan originator the lender sponsors.

We also service the loans we make. Is that covered by this bond?

No. Since October 1, 2025 a licensed lender that services loans must hold an Exempt Mortgage Servicer registration on NMLS and maintain the supplemental servicer surety bond, fidelity bond and errors and omissions coverage required by CGS 36a-719c.

What happens if the bond is cancelled?

The surety must give 30 days written notice to you and the commissioner. When the cancellation takes effect the commissioner automatically suspends the licenses unless the bond is reinstated first.

How is the premium set?

The surety prices the bond after reviewing the owners' credit, the company's financial statements and the penal sum required. A higher tier means a larger bond and a larger premium.