Surety bond required by the Illinois Department of Financial and Professional Regulation (IDFPR) for every entity holding a Residential Mortgage License (RML) under the Residential Mortgage License Act of 1987.
Illinois ties the mortgage licensee bond amount to the licensee's prior-year Illinois loan origination volume. Under IDFPR rules and the Residential Mortgage License Act, the tiered structure is:
| Annual IL Loan Volume | Required Bond |
|---|---|
| $0 – $5 million | $25,000 |
| $5M – $20 million | $50,000 |
| $20M – $50 million | $100,000 |
| $50M – $100 million | $150,000 |
| $100 million + | $200,000 |
The bond is filed electronically through NMLS as an Electronic Surety Bond (ESB). Licensees must update the bond amount when crossing into a new tier.
Banks and credit unions chartered by federal or state authority are exempt under federal preemption.
Premium scales with bond amount. Most $25,000 bonds for low-volume brokers cost $250–$500/yr. Higher tiers move into the thousands:
| Credit Profile | Annual Premium | Approx. Rate |
|---|---|---|
| $25,000 bond, good credit | $250 – $500 | 1% – 2% |
| $50,000 bond, good credit | $500 – $1,000 | 1% – 2% |
| $100,000 bond, good credit | $1,000 – $2,500 | 1% – 2.5% |
| $200,000 bond, good credit | $2,000 – $5,000 | 1% – 2.5% |
| Any tier, challenged credit | Up to 5% of bond | 3% – 5%+ |
Illinois mortgage bonds are continuous — they remain in force until canceled by the surety or the licensee. Premium is billed annually. The IDFPR requires the bond to remain at or above the volume-based minimum at all times; underbonding is grounds for license suspension.
Annually, in conjunction with your NMLS Mortgage Call Report. If your reported origination volume puts you in a higher tier than your current bond, IDFPR will require a rider within 30 days.
The minimum $25,000 bond applies. You'll move up the tier ladder as your origination volume increases.
Yes — the company-level bond covers the actions of all MLOs sponsored by the licensee. Individual MLOs do not file their own bonds in Illinois.
Yes, but cancellation requires 30-day written notice to IDFPR and the surety. Your IL license must be surrendered first to avoid an enforcement action.
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Start Your ApplicationRelated: All Illinois surety bonds · What is a surety bond? · How surety bond costs are calculated