Surety Bond Encyclopedia

RMLA Residential Mortgage Lending Act License - NMLS Bond - Statewide in Ohio

Brief Summary

Most Ohio mortgage companies guess at this bond amount and guess low or high. The figure is a formula tied to last year's loan volume, with a floor that grows with every extra office, and servicers have their own minimum. Get the number right the first time and the bond goes into NMLS once instead of twice.

Every Ohio Residential Mortgage Lending Act registrant must keep a corporate surety bond in force under Ohio Revised Code 1322.32. The amount is one half of one percent of the residential mortgage loans originated in the preceding calendar year, capped at $150,000. Mortgage lenders and brokers can never go below $50,000 plus $10,000 for each location beyond the first. Registrants that only service loans post at least $150,000. The bond runs to the Ohio Superintendent of Financial Institutions.

We can help with all Ohio bonds!

How to Apply for a RMLA Residential Mortgage Lending Act License - NMLS Bond:

Total the dollar amount of residential mortgage loans originated in the prior calendar year, inside and outside Ohio.
Multiply by one half of one percent and cap the result at $150,000.
Compare that figure to your floor: $50,000 plus $10,000 per added location for lenders and brokers, $150,000 for servicing only registrants.
Have the registrant's legal name, any trade names and the main office address ready, as they must appear on the bond.
Complete the bond application and pay the premium.
File the bond with the Ohio Division of Financial Institutions before conducting business, and renew the registration by December 31.

Detailed Information About the Ohio RMLA Residential Mortgage Lending Act License - NMLS Bond:

The amount is a formula, not a flat number

Ohio Revised Code 1322.32(A)(1) sets the registrant bond at one half of one percent of the aggregate loan amount of residential mortgage loans originated in the immediately preceding calendar year, up to a maximum of $150,000. Ohio Administrative Code 1301:8-7-14 counts loans originated within and outside Ohio, so national volume goes into the calculation, not just Ohio files.

Two floors sit under that formula:

Mortgage lenders and mortgage brokers: never less than $50,000, plus an additional $10,000 for each location beyond the first.
Registrants that engage exclusively in mortgage servicing: a minimum of $150,000.

A new company with no prior year originations posts the floor that fits its business type and office count.

One bond covers every office

OAC 1301:8-7-14 calls for one bond in the appropriate aggregate amount regardless of the number of registered office locations. When an office opens or closes, an endorsement rider raises or lowers the bond. Loan originators employed by the registrant are covered by the company bond and do not need individual bonds.

Who is outside the Act

ORC 1322.04 exempts banks, savings banks, trust companies, savings and loan associations and credit unions, along with governmental entities, certain colleges and universities, and bona fide nonprofit organizations, among others. Credit union service organizations and certain depository institutions hold a letter of exemption instead of a certificate of registration.

Fees and renewal

The application fee is $700 for each office location (ORC 1322.09). Certificates of registration expire every December 31 and renew with a $700 per location fee. A renewal filed late can still be accepted within 45 days of the deadline with an added $150 penalty (ORC 1322.10).

When the penal sum drops

If a claim payment reduces the bond, the registrant must furnish a new or additional bond or a reinstatement endorsement. The rule requires the registrant to stop originating residential mortgage loans until the bond is back to its full required value, and failing to restore it within 30 days is grounds for discipline including revocation.

Eligibility and Requirements for a Ohio RMLA Residential Mortgage Lending Act License - NMLS Bond:

Corporate surety bond issued by a bonding or insurance company authorized to do business in Ohio.
Obligee: Ohio Superintendent of Financial Institutions.
Bond protects any buyer injured by a violation of ORC Chapter 1322.
One bond for all registered office locations, adjusted by endorsement rider.
Application and renewal fees of $700 per office location.

Ohio RMLA Residential Mortgage Lending Act License - NMLS Bond FAQs:

We are a new company with no loan history. What bond do we need?

The volume formula produces nothing without prior year originations, so you post the floor. For a mortgage lender or broker that is $50,000 plus $10,000 for each location beyond the first. A servicing only registrant posts $150,000.

Does out of state volume count toward the bond amount?

Yes. OAC 1301:8-7-14 bases the bond on residential mortgage loans originated within and outside Ohio in the preceding calendar year.

Do our loan originators need their own bonds?

Not when they work for a registrant that carries the bond. ORC 1322.32 relieves licensees covered by their employer's bond from obtaining an individual bond.

We just opened a second branch. Do we need a new bond?

No. One bond covers all registered locations. An endorsement rider increases the amount to reflect the added office.

What must we report to the Division about the bond?

Any lawsuit brought by a buyer alleging a violation of the Act, and any judgment, must be reported to the superintendent by certified mail within ten days.