California Residential Mortgage Lender - NMLS Bond
Overview
The California Residential Mortgage Lending Act puts a specific number on the bond: Financial Code section 50205 requires every licensee under the Act to maintain a surety bond of $50,000, and it authorizes the Commissioner of the Department of Financial Protection and Innovation to require a larger bond — up to $100,000 — based on the licensee's volume of business. The bond runs in favor of the state for the benefit of consumers harmed by violations of the Act, and licensees post it electronically through NMLS on the DFPI's prescribed CRMLA bond form.
Who Needs This Bond?
Companies licensed — or applying for licensure — as residential mortgage lenders or servicers under the California Residential Mortgage Lending Act carry this bond. That includes lenders funding residential loans on California property, servicers collecting on those loans, and combined lender/servicer licensees, whether headquartered in California or entering from out of state through NMLS. Brokers and lenders operating under California's other licensing schemes (the CFL or DRE routes) have separate requirements — this bond belongs specifically to CRMLA licensees.
What is this Bond For?
Section 50205 conditions the bond on the licensee's faithful compliance with the CRMLA. If a licensee's violation of the Act — unlawful lending or servicing practices, misused funds, failures to perform obligations the law imposes — causes a covered loss, recovery comes from the bond up to its penal sum. The bond runs to the state for the benefit of harmed consumers; it is not fidelity coverage for the company and not insurance protecting the licensee, which must reimburse its surety for any paid claim.
When is it Required?
The bond must be in place at licensure and stay continuously in force for the life of the license — DFPI verifies it through NMLS at application and at each renewal cycle. Because the Commissioner can raise the required amount to as much as $100,000 as business volume grows, expect the figure to be revisited when your annual report shows higher California volume. A lapse or cancellation without immediate replacement is a license-level compliance failure, not a paperwork footnote.
Where Does it Apply?
The bond covers CRMLA-licensed activity on residential property throughout California and is administered by the Department of Financial Protection and Innovation. Filing happens electronically through NMLS using the DFPI's CRMLA surety bond form, so the bond travels with your NMLS record rather than sitting in a filing cabinet. Lending in additional states means separate bonds for each state's regulator — this one answers only to California.
How to Buy Online
Use 'Buy This Bond Online' to open the secure surety portal in a new tab, complete the short application, and pay in one session. The executed bond is delivered ready for electronic submission to your NMLS record for DFPI review.
Why Bond Titan?
This page cites the Financial Code section and the DFPI's official bond form directly in the Official Sources section below, so your compliance team can verify every figure before purchase. Bond Titan is powered by The Southern Agency, a licensed surety agency, with an online flow timed for NMLS application and renewal deadlines.
Official Sources
The requirements described on this page are verified against the official sources below.
- $50,000 surety bond required of CRMLA licensees; Commissioner may require up to $100,000 based on volume; bond conditioned on compliance with the Act: California Financial Code § 50205 (verified July 16, 2026)
- DFPI's official CRMLA surety bond form for filing through NMLS: DFPI CRMLA Surety Bond Form (verified July 16, 2026)