The Maryland Consumer Loan Bond is a type of surety bond and is a requirement to obtain a consumer loan license in the state. While the license and surety bond are a requirement of the Maryland Commissioner of Financial Regulation, the license administration and application is managed by the Nationwide Mortgage Licensing System (NMLS). the license and surety bond is required of any business that makes any loan or advance of money or credit under the Maryland Consumer Loan Law. Additionally, a consumer loan licensee is exempt from the installment loan licensing provisions which means that a consumer loan licensee may make loans (other than mortgage loans). The Maryland Consumer Loan Bond amount is $50,000. The premium for the bond will usually be 1% to 3% of the surety bond amount.
This license authorizes the following activities:
1 – Required only if purchasing a loan subject to the Maryland Consumer Loan Law.
2 – Holder is exempt from credit services business licensure, which is normally required for this activity.
3 – Required only if servicing a loan you own which is subject to the Maryland Consumer Loan Law.
4 – Requires a mortgage lender license. If making a loan of $25,000 or less, a consumer loan license is also required, unless the lender makes a written election of Subtitle 1, 9, or 10 of the Commercial Law Article, the loan is made by a person who makes no more than three consumer loans per year and does not engage in the business of making consumer loans, or the lender is an employer lending to an employee.
5 – Required only if recovering judgment on a loan you own which is subject to the Maryland Consumer Loan Law.
6 – Required only if modifying a loan you own which is subject to the Maryland Consumer Loan Law.
7 – Allows direct lending to retail purchasers in amounts up to $25,000. Does not permit the purchase of retail sale agreements, retail credit accounts, or secured home improvement contracts from sellers.
At surety1.com we make it easy to obtain this required surety bond. Our 3 step process is:
Once these steps have been completed, the Maryland Consumer Loan Bond will be filed electronically with the NMLS by Surety1.com.
1 – The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003. We also maintain an A+ rating from the Better Business Bureau. We also maintain an A+ rating from the Better Business Bureau.