Volume-based surety bond required by the California Department of Financial Protection and Innovation (DFPI) of every Residential Mortgage Lender (RML) and Residential Mortgage Loan Originator company.
California's Residential Mortgage Lending Act (Fin. Code §50000 et seq.) requires every RML licensee to maintain a surety bond filed through the NMLS Electronic Surety Bond (ESB) system. The bond amount is tied to prior-year California loan origination dollar volume:
| Annual CA Origination Volume | Required Bond |
|---|---|
| Under $50 million | $50,000 |
| $50M – $250 million | $100,000 |
| $250M – $500 million | $150,000 |
| $500 million + | $200,000 |
The bond protects California consumers from financial loss caused by RMLA violations including unlicensed activity, fee misrepresentation, and failure to fund or close loans as committed.
California Financing Law (CFL) licensees use a separate, lower bond ($25,000) under Fin. Code §22112 if they exclusively make non-mortgage consumer or commercial loans.
Bond premium scales with the required amount. Most companies under $50M volume pay $250–$1,000 annually:
| Credit Profile | Annual Premium | Approx. Rate |
|---|---|---|
| $50,000 bond, good credit | $250 – $1,000 | 0.5% – 2% |
| $100,000 bond, good credit | $500 – $2,500 | 0.5% – 2.5% |
| $150,000 bond, good credit | $750 – $3,750 | 0.5% – 2.5% |
| $200,000 bond, good credit | $1,000 – $5,000 | 0.5% – 2.5% |
| Any tier, challenged credit | Up to 5% of bond | 3% – 5%+ |
The CA RML bond is continuous — it remains in force until canceled. Premium is billed annually. DFPI requires bond amount to track volume tiers; upgrading is required within 30 days of crossing into a higher tier. Underbonding results in license deficiency notices.
By dollar amount of California originations from the prior calendar year. Loan count is irrelevant for tier determination; a single $50M+ commercial-residential loan can put a small company into a higher tier.
No. The RML bond and CFL bond are separate filings under different statutes, and the CFL bond is fixed at $25,000 regardless of volume.
Company level only. Branches operating under the master RML license are covered by the company-level bond.
The surety must give 30 days' written notice to DFPI. During that window you must replace the bond or DFPI suspends your license. A lapse is a public NMLS event affecting future renewals.
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