$50,000 surety bond required by the Ohio Department of Commerce, Division of Financial Institutions for all licensed mortgage brokers under the Residential Mortgage Lending Act (RMLA).
The Ohio mortgage broker bond is a $50,000 financial guarantee required of every entity registered under the Residential Mortgage Lending Act (R.C. 1322). It protects Ohio borrowers and the Department of Commerce from financial loss caused by a broker's fraud, misrepresentation, or violation of the RMLA — including unlicensed activity, mishandling of escrow funds, or failure to disburse loan proceeds correctly.
The bond is filed electronically through the Nationwide Multistate Licensing System (NMLS). The original electronic surety bond (ESB) must be active at all times the broker holds an Ohio license; lapses trigger an immediate license deficiency.
Depository institutions (banks, credit unions) and their employees are exempt under federal preemption.
You don't pay the full $50,000 — you pay an annual premium based on the underwriter's evaluation of credit, business experience, and loan volume. Typical Ohio rates:
| Credit Profile | Annual Premium | Approx. Rate |
|---|---|---|
| Excellent Credit | $500 – $750 | 1% – 1.5% |
| Good Credit | $750 – $1,250 | 1.5% – 2.5% |
| Fair Credit | $1,250 – $1,750 | 2.5% – 3.5% |
| Credit Challenges | $1,750 – $2,500+ | 3.5% – 5%+ |
Ohio mortgage broker bonds renew on a 2-year term aligned with your NMLS license. You'll receive a renewal notice approximately 60 days before expiration. Failure to renew results in NMLS flagging your license as deficient, which Ohio DFI treats as grounds for suspension.
Yes — the aggregate liability across all claims during the bond term is capped at $50,000. The surety pays valid claims up to that limit, then seeks reimbursement from you (the principal). The bond protects the public, not the broker.
Yes. Markets exist for challenged credit, though premiums run higher. Recent bankruptcies (within 2 years) make approval harder but not impossible.
It isn't — Ohio uses a single bond form for both brokers and lenders under the RMLA. The $50,000 amount is the same regardless of which license type you hold.
The surety investigates. If valid, they pay the claimant up to the bond limit, and you must reimburse the surety in full. A claim history makes future renewals more expensive and may lead to non-renewal.
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