Volume-tiered surety bond required by the Washington Department of Financial Institutions (DFI) for mortgage brokers and loan originators licensed under the Washington Mortgage Broker Practices Act.
The Washington Mortgage Broker Bond is a surety bond required by the Washington Department of Financial Institutions (DFI) under the Washington Mortgage Broker Practices Act (RCW 19.146). Bond amounts are tiered by the licensee's prior year loan origination volume:
| Annual Loan Volume | Required Bond Amount |
|---|---|
| Under $10 million (or new applicants) | $20,000 |
| $10 million – $30 million | $40,000 |
| Over $30 million | $60,000 |
The bond protects Washington consumers from financial harm caused by a mortgage broker's fraudulent acts, misrepresentation, or violations of the Mortgage Broker Practices Act. It is submitted through NMLS as part of the license application and renewal.
Washington mortgage broker licenses renew annually through NMLS. DFI recalculates the required bond amount at renewal based on prior year Washington origination volume. Confirm your bond tier 60–90 days before renewal and secure an updated bond or rider before the renewal deadline.
Yes. Washington requires individual MLOs to be bonded either through their own individual bond or through the company they work for. Check with your company's compliance officer on whether the company bond covers individual MLOs or whether each originator must obtain their own bond.
New Washington mortgage broker applicants with no prior year origination volume in the state start at the $20,000 minimum tier. As loan volume grows, the bond amount increases to $40,000 (at $10M) and $60,000 (at $30M) at each annual renewal.
Yes. DFI takes bond claims seriously. If the surety pays a valid claim, DFI is typically notified and may open a compliance investigation. Depending on the severity of the underlying conduct, license suspension or revocation is possible in addition to the personal financial liability to the surety.
Most applicants with good credit receive approval and a bond certificate within 24 hours. Upload the bond to NMLS and allow several business days for DFI's review team to process the document during peak renewal periods.
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