The California Department of Business Oversight (CDBO) regulates and licenses mortgage lenders who are required to obtain a license under the California Finance Lenders Law (CFLL). A requirement of this license is the submitting and maintaining of a surety bond with the CDBO.
The surety bond amounts will be based on the aggregate dollar amount of residential mortgage loans originated by the licensee in the preceding calendar year:
- $0 – $1,000,000: $25,000 Bond
- $1,000,001 – $50,000,000: $50,000 Bond
- $50,000,001 – $500,000,000: $100,000 Bond
- Over $500,000,000: $200,000 Bond
California Mortgage Lender (CFLL) Bonds guarantee that the principal (lender) complies with all provisions of the California Finance Lender Law and protects individuals who transact business with the principal.
License applications are submitted through the Nationwide Mortgage Licensing System (NMLS) and additional requirements for California can be found on the NMLS website – California Licensing Requirements Page. Licensing costs are $400 including the NMLS processing fee and are not refundable.
CA Residential Mortgage Lender:
California Department of Business Oversight (CDBO) regulates and licenses residential mortgage lenders, residential mortgage loan servicers or both mortgage lender and residential mortgage loan servicer who are required to obtain a license under the California Residential Mortgage Lending Act (CRMLA). The licensee must be an approved lender/servicer for the Federal Housing Administration, Veterans Administration, Farmer Home Administration, Government National Mortgage Association, Federal National Mortgage Association or Federal Home Loan Mortgage Corporation to apply for a license.
An important step in acquiring this license is the submitting and maintaining of a $50,000 surety bond with the CDBO. The bond guarantees that the principal (lender/servicer) complies with all provisions of the California Residential Mortgage Lending Act and protects individuals who transact business with the principal.
License applications are submitted through the Nationwide Mortgage Licensing System (NMLS), and additional requirements for California can be found on the NMLS website – California Licensing Requirements Page. Licensing costs are $1,100, including the NMLS processing fee, and 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.