This bond protects Illinois consumers and the state from financial harm caused by mortgage brokers and bankers who violate state regulations or engage in fraudulent practices. The bond amount is tiered based on the licensee's prior-year loan volume, ranging from $25,000 to $150,000, and is filed through the NMLS syste…
Overview
What it is.
This bond protects Illinois consumers and the state from financial harm caused by mortgage brokers and bankers who violate state regulations or engage in fraudulent practices. The bond amount is tiered based on the licensee's prior-year loan volume, ranging from $25,000 to $150,000, and is filed through the NMLS syste…
Who usually needs it
Licensed mortgage brokers, mortgage bankers, and registered exempt entities operating in Illinois who broker, fund, originate, service, or purchase residential mortgage loans. The bond must cover each sponsored Mortgage Loan Originator working under the licensee.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateILBond amount$25,000ObligeeIllinois Department of Financial and Professional Regulation (IDFPR), Division of Banking, Residential FinanceBond classLicense BondCategoryFinancial ServicesBondIllinois Mortgage Broker / Mortgage Banker BondPlain descriptionThis bond protects Illinois consumers and the state from financial harm caused by mortgage brokers and bankers who violate state regulations or engage in fraudulent practices. The bond amount is tiered based on the lice…Who needs this bondLicensed mortgage brokers, mortgage bankers, and registered exempt entities operating in Illinois who broker, fund, originate, service, or purchase residential mortgage loans. The bond must cover each sponsored Mortgage…
FAQ
Common questions.
How is the Illinois mortgage broker/banker bond amount determined?
The bond amount is tiered based on your company's Illinois residential mortgage loan volume from the preceding calendar year. The tiers are: $25,000 for $0-$5M in loans, $50,000 for $5M-$20M, $75,000 for $20M-$50M, $100,000 for $50M-$100M, and $150,000 for over $100M. IDFPR reviews and adjusts your bond amount annually based on your reported loan volume through NMLS.
Does the Illinois mortgage broker bond cover my sponsored loan originators?
Yes, your surety bond must provide coverage for each Mortgage Loan Originator (MLO) sponsored under your mortgage broker or mortgage banker license. This is a specific requirement under 38 Ill. Adm. Code 1050.490, ensuring that all originators working under your license are covered by the bond's protection.
What violations can trigger a claim against my Illinois mortgage broker bond?
Claims can be filed by IDFPR for violations including fraud, material omissions, failure to comply with Illinois Residential Mortgage License Act regulations, misleading consumers, and other illegal conduct in the mortgage lending process. Harmed consumers or borrowers submit complaints to IDFPR, which investigates and may file a bond claim on their behalf. You are responsible for reimbursing the surety company for any paid claims, plus interest and fees.
