Mortgage brokers who wish to conduct business in the State of Minnesota must obtain a Residential Mortgage Originator License through the Minnesota Commerce Department (MCD). An important step in the licensing process is the submitting of an Electronic Surety Bond (ESB) via the Nationwide Mortgage Licensing System (NMLS). The bond amounts vary depending on the loan volume of the previous year:
| Loan Volume | Bond Amount |
|---|---|
| $0 – $5,000,000 | $100,000 Bond |
| $5,000,000.01 to $10,000,000 | $125,000 Bond |
| $10,000,000.01 to $25,000,000 | $150,000 Bond |
| Over $25,000,000 | $200,000 Bond |
Minnesota Mortgage Broker Bonds guarantee that the principal (broker) adheres to and conducts business consistent with the 2017 Minnesota Statutes – Chapter 58A. If any borrower or consumer incurs any losses or damages due to the principals failure to comply with Minnesota law, a claim may be filed against the surety bond. Any damages paid out by the surety must be reimbursed by the principal.
Applications for licenses are handled by the Nationwide Mortgage Licensing System (NMLS), and additional information can be found on the NMLS website. Licensing costs are $1,100, including the NMLS processing fee, and any fees collected through the NMLS are not refundable.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.