California Finance Lender Bond

California Finance Lender Bond

Other names for this bond: CA mortgage broker license bond, CA loan originator license bond, CA mortgage broker bond

According to California Financing Law all persons or businesses that act as finance lenders or finance brokers must hold a valid Finance Lender License. Finance Lenders are defined as any person engaged in the business of making consumer or commercial loans. Finance Brokers are defined as any person engaged in the business of negotiating or acting as a broker in connection to consumer or commercial loans made by finance lenders. In order to obtain a Finance Lender License, Finance Lenders and Broker are required to maintain a minimum net worth of $25,000 and to post an active $25,000 Finance Lender Surety Bond.

Fill out the fast, secure application below and we will help you get bonded. We will send you a free bond quote after shopping for the best rate for you.

The Finance Lender Surety bond protects consumers against fraudulent lending acts according to the provisions of the California Finance Lenders Law. If a consumer incurs any physical or financial loss due to the misconduct of the finance lender, their agents, or employees, this bond ensures the consumer will be reimbursed.

CFLL lender and/or broker licensees who originate residential mortgage loans are required to maintain a surety bond that covers the activities of the MLOs they employ. The bond amount will be based on the amount of origination activities conducted by the licensee. The surety bond amounts will be based on the aggregate dollar amount of residential mortgage loans originated by the licensee in the preceding calendar year, as follows:

Aggregate Loans Bond Amount
$0-$1,000,000 $25,000
$1,000,001-$50,000,000 $50,000
$50,000,001-$500,000,000 $100,000
$500,000,000+ $200,000
California Lenders and brokers who originate residential mortgage loans are required to maintain a surety bond that covers all mortgage loan originators (MLO) they employ. California Financial Code Section 22112 requires each licensee to maintain this surety bond at all times.
The premium will vary based on credit and years of industry experience. With strong credentials, the premium can be as low as $250 for a 1 year term.

To get a free finance lender quote, complete our online application and submit. You can also download & complete the PDF application and email to apps@southcoastsurety.com or fax to 949.361.9926. A quote should be emailed to you within 1-2 business days.