District of Columbia Mortgage Lender & Broker Bond

The District of Columbia Department of Insurance, Securities and Banking is the authority on mortgage broker and lender licensing. The licensing regulations are detailed under the Council of the District of Columbia Title 26. To obtain and hold one of these licenses, a surety bond is required. 

This surety bond is an agreement between three parties: 

• Principal: The mortgage broker or lender that needs to get the bond.
• Obligee: The entity requiring the principal to get bonded.
• Surety: The company that issues the bond.

When someone has been financially impacted by a mortgage broker’s or lender’s unethical or fraudulent activities, he or she can file a claim with the surety. The surety is responsible for investigating and validating the claim. Once a claim has been validated, the surety pays the claimant up to the bond’s penal sum. 

After the claimant receives the funds, the principal is obligated to reimburse the surety for the full amount. Because of the financial impact of a claim, avoiding claims against the bond is essential for mortgage brokers and lenders. 

The cost of a District of Columbia mortgage broker and lender bond is between $500 and $5,000. , depending on the required bond amount, which is based on the applicant’s loan volume from the previous year.

• $12,500 bond for loan volume of $1,000,000 or less
• $17,500 bond for loan volume between $1,000,001 and $2,000,000
• $25,000 bond for loan volume between $2,000,001 and $3,000,000
• $50,000 bond for loan volume between $3,000,001 and $5,000,000

The cost of the bond (bond premium) typically ranges from 1% to 10% of the bond amount, depending on factors such as the applicant’s credit score and financial standing. Use the chart below to estimate your bond cost before applying.

Some of our valued customers are interested in how we determine how much a bond costs. After we receive a bond application, we review the applicant’s finances, credit scores, industry experience and bond history.

1. Apply For Your Bond

Obtaining a District of Columbia mortgage broker and lender bond is a quick process. The first step is to apply for your bond using one of the two methods available.

1. Apply for a bond online – The bond application form is accessible online 24/7. Our customers are usually able to complete the application in a couple of minutes. 
2. Call us at (888) 592-6631 – Our courteous bond specialists will happily accept your application by phone and answer your questions. 

When applying, you will need:

• Bond name (Banking Bureau Surety Bond) 
• Bond amount ($12,500-$50,000)
• Email and contact information

2. Get a Quote

Our customers benefit from a quick bond quote after they apply. After you receive the quote via email, we can review the quote with you upon request. Please get in touch with us for revision requests.

3. Purchase Your Bond

To complete your purchase, sign the document and pay the invoice online. Then, we will deliver your original bond to you via email. 

To apply for a District of Columbia mortgage broker license or a lender license, an electronic surety bond must be submitted with the other required documents to the NMLS. The District of Columbia Department of Insurance, Securities, and Banking oversees licensing and ensures compliance with state bond requirements. 

Mortgage brokers and lenders licensees must use the Mortgage Broker Surety Bond form, which serves as a financial guarantee to ensure compliance with District of Columbia mortgage regulations.

The surety is required to submit a 30-day written cancellation notice to the Department of Insurance, Securities, and Banking via registered or certified mail.

If you have any questions regarding the required bond amount, the definition and role of mortgage brokers and lenders in the District of Columbia, etc., please contact us.

A new customer recently contacted us with a question about the type of bond he needed. We spent time answering all of his questions thoroughly, enabling him to proceed with the bond application with confidence. The customer appreciated the personalized attention we provided and how easy our process is.

The licensing process for a District of Columbia mortgage broker or lender license is completed through the Nationwide Mortgage License System. To apply, you must submit the following items:

• Application
• Surety bond
• Financial statements
• Certificate of Registration or Good Standing
• Formation documents
• Management chart
• Organizational chart
• Resident/registered agent
• Business plan
• Sponsorship of individual licensed mortgage loan originators
• Control person
• Affidavit of prior mortgage broker or lender activity

Nationwide Mortgage Licensing System. (n.d.). Checklist compiler.
https://mortgage.nationwidelicensingsystem.org/slr/SitePages/Checklist-Compiler.aspx

Department of Insurance, Securities, and Banking. (n.d.). Home. Department of Insurance, Securities, and Banking.
https://disb.dc.gov/

Council of the District of Columbia. (n.d.). Title 26. Public welfare. DC Council.
https://code.dccouncil.gov/us/dc/council/code/titles/26

Nationwide Mortgage Licensing System. (n.d.). District of Columbia mortgage bond form (DC2). Nationwide Mortgage Licensing System.
https://mortgage.nationwidelicensingsystem.org/slr/stateforms/dc2-bond-form.pdf