Surety Bond Requirements for Mortgage Companies and Supervised Lenders in Kansas
If you're applying for a mortgage company license or a supervised loan license in Kansas, you are required to file a surety bond with the Kansas Office of the State Bank Commissioner (OSBC) as part of your license application through the Nationwide Multistate Licensing System (NMLS). Which bond amount applies to you depends on your license type and, for supervised lenders, how many locations you operate from.
Mortgage Company License - Surety Bond Requirements
A minimum of a $100,000 surety bond is required under the Kansas Mortgage Business Act for anyone who brokers, originates, services, sells, or arranges mortgage loans with Kansas consumers.
Under special circumstances, the bond amount can be up to $1,000,000 if the commissioner determines a higher bond is necessary for your business.
Supervised Loan License - Surety Bond Requirements
A $100,000 surety bond is required under the Kansas Uniform Consumer Credit Code for anyone making consumer loans with an APR over 12%, including many non-real-estate secured loans. The bond covers one licensed place of business.
For each additional location, an additional $25,000 coverage is required, with a maximum total bond amount of not more than $300,000.
Under special circumstances, the bond amount can be up to $1,000,000 if the administrator determines a higher bond is necessary for your business.
How Much Does a Kansas Mortgage Broker Bond Cost?
The surety bond cost for mortgage companies and supervised lenders in Kansas starts at 0.75% of the bond amount for applicants with a good credit score.
For a full breakdown of how surety bond pricing works, see our surety bond cost guide.
Bad credit doesn't disqualify you from getting bonded. We've helped business owners across the credit spectrum qualify through our bad credit bond program, though your rate will typically be higher than the starting prices below.
Beyond credit score, your surety may also consider your personal and business financial statements, fixed and liquid assets, and industry experience. The table below shows the starting cost for each bond amount, assuming outstanding credit history, strong financials, and previous experience.
| License Type | Bond Amount | Starting Cost / Year |
|---|---|---|
| Mortgage Company License | Minimum $100,000 | $750 |
| Supervised Loan License
1 licensed location |
$100,000 | $750 |
| Supervised Loan License
2 or more licensed locations |
$100,000 + $25,000 for each additional location |
$750 for the first location + $188 for each additional location |
| Supervised Loan License
9 or more licensed locations |
$300,000 | $2,250 |
Wondering how much your bond would cost you? Complete our online application for a free, no-obligation quote.
Why Lenders and Mortgage Professionals Need a Surety Bond?
The surety bond binds you to operate in compliance with the Kansas Mortgage Business Act (mortgage companies) or the Uniform Consumer Credit Code (supervised lenders). In practice, it's a guarantee to the state and to Kansas borrowers that you'll conduct business lawfully.
If you violate the terms of your license, such as by charging unauthorized fees or mishandling a borrower's loan, a claim can be made against your bond to cover fines, expenses, and any losses or damages caused. In case of a valid claim, the surety pays out the amount, which can be not more than the full penal sum of the bond. You're then responsible for reimbursing the surety in full.
First time getting bonded? See our what is a surety bond guide to learn how surety bonds work.
How to Get Bonded
Getting your Kansas mortgage company or supervised lender bond with Bryant Surety Bonds takes three simple steps.
- Apply for a free online quote. Complete our short online application form in minutes.
- Get approved and pay for your bond. We shop your application across 20+ A-rated carriers and issue your bond once you accept your rate.
- We file your bond electronically with NMLS, satisfying the Kansas Electronic Surety Bond (ESB) requirements.
Keep in mind that before your bond is accepted by the OSBC, you'll need to grant us authority as your surety inside NMLS.
How Do I Renew My Bond?
Both license types run on a calendar-year term, and your bond renews alongside your license.
Mortgage Company License Renewal
- Renewal deadline: Submit your renewal application by December 1.
- Late renewals: Renewals received December 2-31 incur a late/incomplete renewal fee of up to $750.
- Reinstatement window: Complete renewal applications filed between January 1 and the last day of February keep your license active without a lapse, for a $750 reinstatement fee.
- Bond amount: Kansas requires you to maintain the $100,000 minimum bond as of January 1 each year. Under special circumstances, the commissioner may increase your bond amount up to $1,000,000.
Supervised Loan License Renewal
- Renewal deadline: Submit your renewal application by December 1.
- Late window: Renewals received December 2-31 incur a late/incomplete renewal fee of up to $750.
- Reinstatement window: Complete renewal applications filed between January 1 and the last day of February keep your license active without a lapse, for a $750 reinstatement fee.
- Bond amount: If you added a licensed location during the year, you'll need to increase the bond coverage with $25,000 for that location with your renewal application. Just like with mortgage companies, under special circumstances, the administrator may increase your bond amount up to $1,000,000.
At Bryant Surety Bonds, we send renewal reminders 1-2 months before your bond expires, and our agents actively help you reduce your bond cost where possible. Once you pay your renewal invoice, we handle the updated ESB filing so your license stays active without a lapse.
How Do Mortgage Companies and Supervised Lenders Apply for a License in Kansas?
Both license types are handled through NMLS. Here's the general process:
- Create or update your NMLS record and complete the Company Form (MU1) for a Mortgage Company License or Supervised Loan License.
- Submit required documentation, including a business plan, formation documents, a Certificate of Authority or Good Standing from the Kansas Secretary of State, organizational and management charts, and evidence of a positive net worth.
- Complete background checks and credit reports for each direct owner and executive officer.
- Grant your surety authority in NMLS, so they can file your required Electronic Surety Bond (ESB) directly to your record.
- Sponsor each individual loan originator who will work with Kansas consumers by submitting an Individual Form (MU4) and an NMLS sponsorship request.
- Pay the required fees (see below).
- Register any branch locations doing business with Kansas consumers, generally through a Branch Form (MU3).
You can find full information about the licensing process and the required documents on the NMLS website.
Kansas Licensing Fees
| Fee | Mortgage Company License | Supervised Loan License |
|---|---|---|
| Application fee (new or renewal) | $400 | $600 |
| Initial license fee | $250 | $250 |
| NMLS processing fee | $120 | $120 |
| Branch registration/license | No OSBC cost (NMLS processing fee applies) | $100 |
Additional NMLS system fees apply for credit reports and criminal background checks; check the NMLS System Fees page for current amounts.
Once your NMLS filing and bond are complete, straightforward applications typically move quickly; incomplete or unusual files can take the OSBC longer to review.
Multistate Licensing and Bonding
If you do business with consumers in more than one state, NMLS lets you manage all of your state licenses, including Kansas, from a single company record. Bond amounts aren't portable between states, though: each state sets its own requirement and needs its own Electronic Surety Bond. Nebraska, for example, requires a flat $50,000 supervised lender bond, well below Kansas's $100,000 minimum.
Bryant Surety Bonds handles multi-state bonding for businesses licensed in more than one state, so you can work with a single agency across all 50 states instead of coordinating separate sureties.
FAQ
Do I need a bond if I'm an individual loan originator, not a company?
No. Individual mortgage loan originators (MLOs) licensed in Kansas are covered by their sponsoring company's bond, not a separate bond of their own.
I have bad credit. Can I still get bonded?
Yes. Your credit score affects your premium, not your eligibility. We work with applicants across the credit spectrum through our bad credit bond program.
Can I operate from a location outside Kansas?
Yes, out-of-state mortgage companies and supervised lenders can hold a Kansas license. They need to follow the same applicable licensing requirements for the state of Kansas.
What happens if a borrower files a complaint against me?
The OSBC investigates complaints and can require the surety to pay valid claims, up to your full bond amount, for losses tied to violations of the Kansas Mortgage Business Act or Uniform Consumer Credit Code. You're responsible for reimbursing the surety for any amount paid out.
Do I need a new bond for each mortgage company branch office?
Mortgage company branch locations are reported to the OSBC through a branch registration, but Kansas doesn't require a separate bond per branch.
Can I cancel my bond?
Your bond stays in effect until canceled. Canceling requires 30 days' written notice to the OSBC, and the surety remains responsible for violations that happened before the cancellation date for up to two years afterward.
Get Bonded With Bryant Surety Bonds
Bryant Surety Bonds is licensed to issue surety bonds in Kansas under license number 208538577-000.
Questions about getting bonded in Kansas? Call us at 866.450.3412.
