Maryland Mortgage Loan Originator Bond

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Bond Penalty: $50,000 to $150,000 by origination volume

If you’re applying for a mortgage loan originator (MLO) license in Maryland, you’ll need to secure a Maryland Mortgage Loan Originator Bond as part of your licensure requirements. Required under §11-619 of the Maryland Financial Institutions Article, this surety bond guarantees your compliance with all applicable laws and regulations governing mortgage origination in the state. The Maryland Commissioner of Financial Regulation uses the bond as a form of consumer protection against fraud, misconduct, or violations committed by licensed MLOs.

Who Needs This Bond?

Any individual applying for an MLO license through the Nationwide Multistate Licensing System (NMLS) in Maryland must be covered by a valid surety bond. Mortgage loan originators who are directly employed by licensed mortgage lenders can be covered under their employer’s surety bond, provided the bond amount meets Maryland’s statutory threshold. However, if an MLO is employed by an exempt mortgage company registrant, that entity must still post a bond that covers the MLO under the same bonding schedule.

Bond Amount Requirements

The penal sum of the Maryland Mortgage Loan Originator Bond is determined by the volume of mortgage lending activity over the previous thirty six months. According to §11-508 of the Financial Institutions Article, the required bond amounts are:

  • $50,000 – for loan volume of $3 million or less
  • $100,000 – for loan volume exceeding $3 million but not more than $10 million
  • $150,000 – for loan volume exceeding $10 million

Exempt mortgage companies sponsoring MLOs must submit a sworn statement of loan volume during registration and renewal cycles to calculate the proper bond amount.

Maryland Surety Bond Form and Electronic Filing

The Maryland Mortgage Loan Originator Bond form must be filed electronically via the NMLS. The form binds both the licensee (Principal) and surety to ensure the faithful performance of the originator in compliance with Maryland law. Key features of the Maryland bond form include:

  • A 90-day cancellation clause with prior notice via NMLS
  • Continuous bond liability, not aggregated across renewals
  • Three-year claim window following bond termination
  • Coverage regardless of license suspension or bankruptcy

Although a PDF version of the bond form exists for reference, all official submissions must be completed electronically within the NMLS system.

Maryland surety bond leader, Surety One, Inc. is a specialist in the bonding needs of finance brokers, loan originators and loan servicers. We offer both the surety bonds and fidelity bonds needed by credit service professionals in all fifty states, Puerto Rico and the U.S. Virgin Islands. Questions about this surety bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat. A Maryland mortgage loan originator bond is quick, easy and delivered in hours.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

What We Need From You

Additional Attachments

  • Current Business Financial Statement (if over $50,000)