Pennsylvania Mortgage Broker Bond

What Is the Pennsylvania Mortgage Broker Bond?

The Pennsylvania Mortgage Broker Bond is required by the Pennsylvania Department of Banking and Securities (DoBS) under the Pennsylvania Mortgage Licensing Act (7 P.S. §6601 et seq.) for all licensed mortgage brokers, mortgage lenders, and mortgage servicers originating residential mortgage loans in Pennsylvania. The bond is submitted through NMLS.

Bond amounts are tiered:

• First year licensees: $50,000
• Subsequent years: $100,000

The bond protects Pennsylvania consumers from financial harm resulting from a mortgage licensee's fraudulent acts, misrepresentation of loan terms, failure to remit payments, or violations of the Mortgage Licensing Act.

Who Needs This Bond in Pennsylvania?

• Mortgage brokers arranging residential mortgage loans in Pennsylvania must be licensed by DoBS and maintain the required bond through NMLS.
• Mortgage lenders and correspondent lenders funding Pennsylvania residential mortgage loans must maintain the bond throughout the license term.
• Mortgage servicers collecting payments on Pennsylvania residential mortgage loans are subject to the same bonding requirement.

How to Get Bonded — Step by Step

1. Apply for your PA mortgage license through NMLS at nmlsconsumeraccess.org. Select "Pennsylvania" and the appropriate license type under DoBS.
2. Apply for the surety bond. First-year applicants need a $50,000 bond; applicants renewing into their second year or beyond need $100,000. Click "Get Your Bond Now" on this page.
3. Upload the bond to NMLS as part of your license application or renewal package.
4. Complete all Pennsylvania DoBS license requirements including financial statements, background checks, and MU1/MU2 forms.
5. Receive your Pennsylvania mortgage license once DoBS approves the application.

Renewal & Continuous Bond Coverage

Pennsylvania mortgage licenses renew annually through NMLS. The renewal deadline is typically December 31 each year. If renewing after your first year, make sure to upgrade the bond from $50,000 to $100,000 before renewal. A lapsed or under-bonded license results in inactivation by DoBS.

Frequently Asked Questions

Why does the bond amount increase after the first year?

Pennsylvania DoBS tiers the bond amount to account for the fact that first-year licensees have not yet built a loan origination volume track record. The $50,000 first-year amount transitions to $100,000 for renewal applicants who are now active originators with greater exposure risk.

Does the bond cover all mortgage loan types in Pennsylvania?

The bond covers your activities under the PA Mortgage Licensing Act, which includes residential mortgage broking and lending. It applies to conventional, FHA, VA, and other residential loan types. Commercial mortgage transactions may be subject to different licensing requirements.

Can I get bonded with less-than-perfect credit?

Yes. Mortgage broker bonds at $100,000 are large enough that underwriting considers credit history carefully, but approval is still possible with credit challenges. Expect a higher premium — typically 2–5% of the bond amount ($2,000–$5,000/yr) for applicants with credit issues.

How do I file the bond with Pennsylvania DoBS?

Pennsylvania DoBS requires bond submission through NMLS. Upload the executed bond certificate as a supporting document in your NMLS application or renewal. DoBS will review the uploaded document as part of the license approval process.

Related: All Pennsylvania surety bonds · What is a surety bond? · How surety bond costs are calculated