Volume-based surety bond required by the Texas Department of Savings and Mortgage Lending (SML) of every Residential Mortgage Loan Originator (RMLO) sponsoring company and Mortgage Banker.
Texas Finance Code Chapters 156 (Mortgage Brokers) and 157 (Mortgage Bankers) require sponsoring companies to maintain an NMLS surety bond at one of two tiers based on prior-year Texas loan dollar volume:
| Annual TX Volume | Required Bond |
|---|---|
| Under $30 million | $25,000 |
| $30 million + | $50,000 |
Texas administers the bond entirely through NMLS Electronic Surety Bond filings. The bond protects Texas consumers and SML from harm caused by RMLO violations of Chapter 156/157, including unlicensed origination, fee misrepresentation, or fraud.
Texas does not require individual RMLOs to post their own bonds — the company-level filing covers all sponsored originators.
Premium is credit-driven and scales with bond amount. Low-volume brokers commonly pay $250–$500/yr:
| Credit Profile | Annual Premium | Approx. Rate |
|---|---|---|
| $25,000 bond, good credit | $250 – $500 | 1% – 2% |
| $25,000 bond, fair credit | $500 – $750 | 2% – 3% |
| $50,000 bond, good credit | $500 – $1,000 | 1% – 2% |
| $50,000 bond, fair credit | $1,000 – $1,500 | 2% – 3% |
| Any tier, challenged credit | Up to 5% of bond | 3% – 5%+ |
Texas mortgage bonds are continuous. Premium is billed annually. SML reviews tier compliance through NMLS Mortgage Call Reports; crossing the $30M threshold requires upgrading to the $50,000 bond within 30 days. Lapsed bonds result in immediate license deficiency.
Through quarterly NMLS Mortgage Call Reports. SML cross-references reported origination dollar volume with bonded amounts; underbonding triggers a 30-day cure notice.
No — the sponsoring company's bond covers all RMLOs sponsored under it. This differs from some states that require individual MLO bonds.
Same bond requirement and same SML form. The license type differs (Chapter 156 vs. 157), but the surety files identically through NMLS.
Yes, with 30-day written notice to SML. The license becomes deficient unless replaced before cancellation. Best practice is to renew before the prior bond cancels.
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