The California Finance Lender Surety Bond is required by the State of California, Department of Business Oversight.
According to the National Mortgage Licensing System, “any person or company that engages in the business of making consumer or commercial loans, or any person or company that engages in the business of negotiating or performing any act as a broker in connection with loans made by a finance lender, when secured by residential real property” are required to obtain a license in order to conduct business in the State of California. A critical component of the license application process is filing a surety bond.
The California Finance Lender Surety Bond guarantees the Lender’s faithful compliance with the provisions of the California Finance Lenders Law. The bond also ensures compensation for any person who sustains an injury by way of the Lender.
The required amount of the California Finance Lender Surety Bond is at least $25,000; however, the actual bond amount depends on the aggregate dollar amount of residential mortgage loans originated by the mortgage lender in the preceding year:
- A loan amount between $0 and $1,000,000 requires a $25,000 surety bond.
- A loan amount between $1,000,001 and $50,000,000 requires a $50,000 surety bond.
- A loan amount between $50,000,001 and $500,000,000 requires a $100,000 surety bond.
- A loan amount over $500,000,001 requires a $200,000 surety bond.
The California Finance Lender Surety Bond is continuous in nature; therefore, it is in full force and effect until cancelled. The bond may be cancelled by the Surety at any time by giving a notice of cancellation to the Department of Business Oversight at least 30 days before the effective cancellation date.
License Fees and Requirements:
- Surety Bond
- $400 license fee (including the NMLS Processing Fee)
- Qualifying Individual
- Disclosure Questions through NMLS
- Net worth of at least $250,000
- Criminal Background Check
- Certificate of Authority/Good Standing Certificate
- Formation Document
All fees are required by the obligee, not the Surety Company.
CLICK HERE for more licensing information from the California Department of Business Oversight.
APPLY for your California Finance Lender Surety Bond today!
Click Here to Visit our State by State Guide to Mortgage Industry Bonds
How to Get Your California Finance Lender Surety Bond
- Complete an online application. It’s free and no-obligation.
- One of our surety experts will contact you with a firm quote and an agreement to sign.
- Provide payment and your signed agreement, and then you will receive your Surety Bond!
If you have any questions, please call us at 877-654-2327.

Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.