Connecticut Mortgage Servicer Addendum for Mortgage Lenders Bond
Overview
Connecticut mortgage lenders that have added servicing functions to their operations need this bond before the state will recognize that expanded scope. It is a condition of the Mortgage Servicer Addendum filing under Connecticut's mortgage licensing framework — separate from the base lender bond already on file. Carrying this bond signals to regulators and borrowers that your servicing activity is backed by a financial guarantee covering dishonest or non-compliant conduct. Without it, the addendum application stalls.
Who Needs This Bond?
Licensed Connecticut mortgage lenders pursuing a Mortgage Servicer Addendum are the direct buyers of this bond. That means a lender that has decided to collect monthly payments, manage escrow accounts, or process payoffs in-house rather than outsourcing that work to a third-party servicer. It also applies to lenders that are absorbing a servicing portfolio through an acquisition and need to update their Connecticut license to reflect the new activity. If your company holds a Connecticut mortgage lender license and you are expanding into servicing, this bond is required.
What is this Bond For?
This bond protects Connecticut borrowers and the state regulator from financial harm caused by a licensed mortgage servicer's failure to handle loan payments, escrow funds, or payoff proceeds properly. It functions as a financial backstop — if your company misapplies escrow funds, fails to credit payments correctly, or otherwise causes a covered financial loss, an injured party can make a claim against the bond. The bond does not protect your company from claims; it protects the people and entities your servicing operation affects. Your obligation as principal is to operate in compliance so no claim ever arises.
When is it Required?
During the licensing process, the Connecticut Department of Banking requires this bond to be in place before it will approve the Mortgage Servicer Addendum attached to an existing mortgage lender license. The bond is ordered at the point when you have committed to adding servicing authority and are assembling the supporting documents for that addendum filing. Waiting until after submission slows approval. Have the bond executed and ready to include with the addendum package.
Where Does it Apply?
This bond is a Connecticut statewide requirement — it applies to all mortgage servicing activity conducted under a Connecticut mortgage lender license, regardless of which county or city the borrowers are located in. It does not satisfy licensing requirements in any other state. If your company services loans in multiple states, each state with a similar addendum requirement will have its own bond obligation.
How to Buy Online
Click the 'Buy This Bond Online' button on this page, which opens the secure surety portal in a new tab. Complete the application with your company information, the required bond amount, and upload any supporting documents. Once approved and payment is processed, your executed bond is available for download and submission to the Connecticut Department of Banking.
Why Bond Titan?
Bond Titan is powered by The Southern Agency and gives you direct online access to a nationwide surety bond catalog — no waiting on an agent callback or playing phone tag to get a bond you need today. The secure surety portal lets you apply, pay, and download your Connecticut Mortgage Servicer Addendum bond in one session. Fast, straightforward, and built for business owners who need to keep their licensing on track.