Mortgage Servicer Addendum for Mortgage Lenders Bond - Statewide in Connecticut

Brief Summary

If your Connecticut mortgage lender license is how you have been servicing loans, the rules changed on October 1, 2025. Servicing now runs through an Exempt Mortgage Servicer registration on NMLS, and the supplemental servicer bond has to be filed there electronically instead of on paper. This is that bond, separate from the bond on your lender license.

A licensed Connecticut mortgage lender that services residential mortgage loans must post a supplemental mortgage servicer surety bond under CGS 36a-719c in a penal sum of $100,000 per office location, filed with the Banking Commissioner. Since October 1, 2025 the Department of Banking requires these lenders to hold an Exempt Mortgage Servicer registration on NMLS and to file the bond there electronically. A fidelity bond and errors and omissions coverage are also required.

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How to Apply for a Mortgage Servicer Addendum for Mortgage Lenders Bond:

• Confirm you hold a Connecticut mortgage lender license and service loans from a licensed main office or branch.
• Register as an Exempt Mortgage Servicer on NMLS under the Department of Banking's October 1, 2025 requirement.
• Count your licensed office locations. The penal sum is $100,000 per office location under CGS 36a-719c.
• Provide company financial statements and owner information for underwriting.
• Pay the premium so the bond can be issued and filed electronically through NMLS.
• Put the required fidelity bond and errors and omissions coverage in place with the commissioner named as additional loss payee.

Detailed Information About the Connecticut Mortgage Servicer Addendum for Mortgage Lenders Bond:

What changed on October 1, 2025

CGS 36a-718(b)(4) has long let a licensed mortgage lender act as a mortgage servicer from its licensed main office or branches without a separate servicer license, as long as it meets the supplemental surety bond, fidelity bond and errors and omissions requirements of 36a-719c. Those lenders filed paper servicer bonds with the commissioner.

The Department of Banking's September 23, 2025 notice, citing Public Act 25-115, ended that arrangement. Starting October 1, 2025, a licensed lender that services loans directly or indirectly must register on NMLS as an Exempt Mortgage Servicer and file its surety bond electronically. The Department explained that NMLS cannot accept more than one surety bond per license or registration type, so the servicer bond needed a registration of its own. The Department states there are no additional fees for the new registration.

How much the bond is

CGS 36a-719c(a) sets the surety bond at a penal sum of $100,000 per office location. The bond must be written by a surety authorized in Connecticut and is conditioned on the servicer performing its written agreements with mortgagors and mortgagees, accounting for all funds, and following Connecticut law. Mortgagors who are harmed can claim against it, and the commissioner can collect civil penalties, restitution and examination costs.

The other two instruments

The same section requires a fidelity bond and errors and omissions coverage, each naming the commissioner as an additional loss payee. Their amount depends on the servicer's most recently reported volume of servicing activity, with a minimum principal amount of $300,000. These are separate from the surety bond on this page.

Cancellation

The surety must give 30 days written notice to the servicer and the commissioner before cancelling. Under 36a-719c the commissioner automatically suspends the servicer's authority when the cancellation takes effect unless the bond is reinstated first.

Confirm the current bond requirements and filing steps for the Exempt Mortgage Servicer registration in NMLS or with the Department of Banking before the bond is issued.

Eligibility and Requirements for a Connecticut Mortgage Servicer Addendum for Mortgage Lenders Bond:

• Connecticut Banking Commissioner as obligee under CGS 36a-719c.
• Penal sum of $100,000 per office location.
• Electronic surety bond filed on the Exempt Mortgage Servicer registration in NMLS, separate from the 36a-492 lender bond.
• Surety authorized to do business in Connecticut.
• Fidelity bond and errors and omissions coverage of at least $300,000, scaled to servicing volume.
• Continuous coverage. Cancellation takes 30 days written notice and triggers automatic suspension.

Connecticut Mortgage Servicer Addendum for Mortgage Lenders Bond FAQs:

Official and Additional Resources for the Connecticut Mortgage Servicer Addendum for Mortgage Lenders Bond: