Licensing for mortgage lenders and correspondent lenders in the State of Connecticut is regulated by the Department of Banking (CDOB). An important step in the licensing process is the submitting and maintaining of a surety bond with the CDOB. The bond protects the consumer from damages due to the principal’s (lender) failure to perform any written agreements or commitments, or by the wrongful conversion of funds paid by the borrower or prospective borrower. It also guarantees that the principal (lender) conducts business consistent with Sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b of the Connecticut General Statutes.
Bond amounts vary depending on the license being applied for. Below is a list of license type and amounts associated with them:
Mortgage Correspondent Lender
- Between $100,000 and $500,000 dependent upon the loan volume
- $100,000 minimum for first time applicants
Mortgage Lender
- Between $100,000 and $500,000 dependent upon the loan volume
- $100,000 minimum for first time applicants
Applications for licenses are handled by the Nationwide Mortgage Licensing System (NMLS), and additional information can be found on the NMLS website – Connecticut State Licensing Requirements Page. Licensing cost vary per license type and are collected by the NMLS.
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.