Overview of Ohio Mortgage Broker Bond Requirements

Mortgage brokers and lenders in Ohio need to post a mortgage broker bond when applying for a license in the state, through the NMLS. The amount of this bond ranges between $50,000 and $100,000.

This bond is required under Chapter 1322 of the ORC, formerly known as the Ohio Mortgage Broker Act (OMBA) and currently called the Ohio Residential Mortgage Lending Act (RMLA).

Under that chapter, apart from the bond, businesses applying for an entity license must also designate an employee or owner as the operations manager. This person is required to have 3 years or more of experience, and are also required to pass an examination. Annual continuing education is also required. The operation manager must have sufficient authority over the entity to carry out his statutory responsibility.

The Chapter also requires loan officers to obtain their own licensing. To obtain a license the loan officer must pass examination; demonstrate a level of fitness, as well as annual continuing education.

If a bonded mortgage broker or lender violate the terms and provisions of the ORC chapter and thereby cause injury to a borrower, the latter may file a claim against their bond to request compensation. Depending on the losses suffered by the claimant, compensation extended by the surety can be as high as the full amount of the bond.

Learn more about how surety bonds work, and why businesses are required to get bonded from our detailed ‘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
  • Exclusive bad credit programs

See below to find out more about how much this bond costs, what may give rise to a claim against the bond, and how to apply to get bonded!

For any additional questions about this or other bonds, call us at (866)-450-3412!

Ohio Mortgage Broker Bond Cost

To get your bond, you must pay a surety bond premium. This premium is a fraction of the full amount of your bond and is determined by the surety when you apply.

The exact amount of the bond must be equal to “one-half per cent of the aggregate loan amount of residential mortgage loans originated in the immediately preceding calendar year”. It must be, at minimum $50,000 and not more than $150,000.

To determine your bond rate, the surety will review your personal credit score, your business and personal financial statements, and may also look at your assets or resume. Since credit score has the most influence on bond cost, the higher your score is, the lower your bond premium will be.

An applicant for a mortgage broker bond with a FICO score of 700 or more can expect to get bonded at a rate between .5% and 1.25% of the total bond amount.

Get a quick cost estimate on your bond by trying our bond calculator or see the table below! You can also request a free and exact quote by completing our bond form.

Bond Cost Based on Credit Score
Surety bond amount Above 700 Between 650-699 Between 600-649 Below 599
Ohio Mortgage Broker and Lender Bond $50,000 to $150,000 $250-$625 to $750-$1,875 $375-$750 to $1,125-$2,250 $1,000-$2,500 to $3,000-$7,500 $2,500-$3,750 to $7,500-$11,250

Bad Credit Bond Program

Applicants with a low credit score, or public records (Bankruptcy, Liens, Collection, or Civil Judgments) may have a difficult time getting bonded.

We offer a Bad Credit Surety Bond Program that is specially tailored to your needs and can get you approved. This program is available for high risk mortgage brokers.

Rates under this program are higher than for applicants with a higher score, but by improving your credit score you can get increasingly better rates on your bond. See the program page to find out more!

Claims Against Your Bond

The Ohio Residential Mortgage Lending Act (RMLA), Chapter 1322 of the ORC, requires mortgage brokers and lenders in the state to get bonded. This requirement is put in place to guarantee that such professionals will comply with the provisions of the Act and perform all obligations and responsibilities as defined in it.

The chapter further states that the bond is for the benefit of any buyer injured by a licensed broker or lender due to their violation of the provisions of the chapter. Such injury may be a result of fraud, dishonest practices or breach of trust.

When action is brought against the broker’s bond, the surety must investigate the issue and determine if and in what amount to extend compensation. The maximum amount of compensation that a surety may provide to claimants is equal to the full amount of the broker’s bond. But, as is the case with all bond agreements, the bonded broker or lender must ultimately repay the surety in full for any compensation it extends!

Apply Here!

To start your Ohio mortgage broker bond application or to simply request a free quote - complete our bond application form. We will contact you with your quote and will all the necessary details about finalizing your application.

It may take up to two working days for your bond to be issued. We will then forward it to you via mail and email.

Start your surety bond application today! Why us?
  • The lowest possible rates
  • A 100% money-back guarantee
  • Access to specialty programs, not available to small agencies

For any further questions about the bonding requirements for mortgage brokers in Ohio, call us at (866)-450-3412! We will be glad to assist you.


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.