Minnesota Finance and Mortgage Broker Bonds

Finance and mortgage broker bonds are legally binding agreements between three parties: 

• Finance professionals such as mortgage brokers and finance lenders
• A government agency like the Minnesota Department of Commerce
• A surety company

The bonds provide a guarantee that licensed finance professionals conduct business in compliance with the regulations set forth in the Minnesota Statutes.

If the finance professional fails to comply with the regulations, the surety company will pay out financial losses to damaged parties up to the full bond amount. The finance professional is liable to reimburse the surety for any damages paid under the bond.

The Minnesota Department of Commerce requires residential mortgage loan originators to post a surety bond worth at least $100,000 as part of the licensing process. The bond requirements for other finance bonds in Minnesota are as follows:

• Minnesota Investment Adviser surety bond: $25,000 and upwards
• Minnesota Credit Services Organization Surety Bond: $10,000

The surety company issuing the bond determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for the Minnesota finance and mortgage broker bonds typically cost between 1% and 5% of the total bond amount. EZSurety has issued mortgage originator bonds in Minnesota for premiums as low as $1,000.

During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a Minnesota mortgage broker bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.

The Minnesota Department of Commerce requires all mortgage brokers and mortgage lenders to receive a Residential Mortgage Originator License. Here are the licensing requirements you’ll need to meet to get your license:

1. Complete the criminal background check
2. Submit your personal financial statements
3. Provide a copy of your Certificate of Authority
4. Submit your business plan
5. Submit your application through the Nationwide Multistate Licensing System & Registry (NMLS)
6. Post the appropriate surety bond
7. Pay $1,000 in licensing fees and a $36.26 background check fee

For information on obtaining other finance licenses in Missouri, you can visit the NMLS Resource Center.