Overview of California Foreclosure Consultant Bond Requirements

To register as a California mortgage foreclosure consultant, individuals must obtain a $100,000 foreclosure consultant bond. This registration is regulated and issued by the Attorney General's Office.

Why do I need a bond?

This bond guarantees foreclosure consultants' compliance with state laws that specify their legal obligations and professional conduct.

If a registered consultant violates the law and harms homeowners, the latter may file a claim to secure compensation for the damage or loss they have suffered.

The surety that backs the bond financially must then resolve the claim by extending compensation. Such compensation must be proportionate to the losses incurred, and could be as high as the full amount of your bond.

To learn more about the purpose of bonds, and how they function, see our detailed β€˜What is a surety bond' guide!

Start your surety bond application today! Why us?
  • Quick turnaround - just 1-2 business days
  • Tailor-made advice on building a strong application
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In the sections below you can learn more about the cost of getting this bond, what can trigger a claim, and how to apply!

You can always call us at (866)-450-3412 if you have any additional questions about this bond!

What's The Cost of The California Foreclosure Consultant Bond?

The cost of getting bonded is equal to a percentage of the full bond amount. This percentage is determined by the surety which you apply with. It is based on the following factors.

Factors that influence your bond premium

The primary factor that determines your bond premium is your personal credit score. The higher an applicant's credit score, the lower the cost of getting bonded.

Applicants who have a credit score of 700 FICO or more are typically offered some of the lowest possible rates. These can vary between .75% and 1.5% of the full amount of their bond.

Applicants with somewhat lower scores are more likely to be bonded at a rate between 1.5% and 5%.

Those applicants who currently have a low or so-called bad credit score are typically bonded in the range of 5%-15% of the total amount of their bond.

In addition to examining your credit score, the surety will likely also request to review your:

  • Personal and business financial statements
  • Fixed and liquid assets
  • Work experience and record

To get an estimate of the cost of your bond, based on your credit score, see the table below!

California Foreclosure Consultant Bond Cost Based on Credit Score

License type

Bond Amount

Credit Score
Above 700 650-699 600-649 Below 599
California mortgage foreclosure consultant $100,000 $750-$1,5000 $1,000-$2,500 $2,500-$5,000 $5,000-$7,500

What Can Give Rise to a Bond Claim?

Under the California Mortgage Foreclosure Consultant Law, a $100,000 bond is required when you apply to become registered as a consultant.

The purpose of this bond is to guarantee your compliance with the provisions of the law. The financial guarantee provided by the bond is β€œfor the benefit of homeowners for damages caused by the foreclosure consultant's violation of this article or any other provision of law".

If, in conducting business, a registered consultant violates the law and causes losses to an individual, that person may file a claim against the bond to seek compensation.

The surety which has vouched for the consultant by issuing the bond must then step in and investigate the claim. If it establishes that the claim is well-founded, it will compensate claimants in an adequate amount.

At this point, the bonded foreclosure consultant is bound to repay the surety in full. This is a standard requirement under bond agreements - that liability is assumed by the bonded party, and never by the surety.

To avoid giving rise to a claim, you must comply with the conditions of your bond at all times.

How to Get Bonded

Ready to apply for your bond? Click on the banner below and complete the bond form. We will get in touch with you shortly to provide you with a free quote on your bond.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

Do you have any further questions about this bond or the bonding process? Call us at (866)-450-3412 anytime!

Further Reading


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.