California Finance Lender or Broker Bond Overview
- Purpose: To guarantee compliance with California lending and brokering laws
- Who Needs It: Consumer and commercial finance lenders and brokers in California
- Regulating Body: The California Department of Financial Protection & Innovation (DFPI)
- Bond Amount: $25,000–$200,000, based on loan activity
- Minimum Price: $200; credit-based
What Is a California Finance Lender or Broker Bond?
If you make loans or help connect borrowers with lenders in California, you need a finance lender or broker bond. This type of surety bond protects borrowers from financial loss if a lender or broker violates state law.
Bond Coverage Requirements for California Finance Lenders and Brokers
Your required bond amount depends on your aggregate residential mortgage loan activity during the previous calendar year.
| Aggregate Loans | Bond Amount |
|---|---|
| ≤$1,000,000 | $25,000* |
| $1,000,001–$50,000,000 | $50,000 |
| $50,000,001–$500,000,000 | $100,000 |
| $500,000,001+ | $200,000 |
*Licensees who do not originate residential mortgage loans need a $25,000 bond.
How Much Do Finance Lender or Broker Bonds Cost in California?
Your exact lender of broker bond cost will depend on the bond amount:
- $25,000 bond: $200 flat rate
- $50,000 bond: Starts at $500, credit-based
- $100,000 bond: Starts at $1,000, credit-based
- $200,000 bond: Starts at $2,000, credit-based
Get your bond today! Just select your amount below to get started.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a CA Financing Law License Bond Work?
When you file this bond, you enter into a three-party agreement.
| Bond Party | Description |
|---|---|
| Principal | The finance lender or broker purchasing the bond |
| Obligee | The CA Department of Financial Protection & Innovation requiring the bond |
| Surety | The issuing surety provider |
If you violate the California Financing Law, harmed parties can file claims against your bond. The surety will pay valid claims up to your full bond amount, but you must reimburse the surety.
How Do I Get Bonded?
Once you know your required bond amount, you can start the bonding process right on this page.
- The $25,000 bond is available for instant purchase.
- For higher bond amounts, we’ll run a soft credit check and send you a free quote within one business day or less.
How Do I File My Bond?
Once you pay for your bond, the surety will upload the bond form directly to your NMLS account. You’ll need to log in to your account and authorize the surety. Then, you’ll be officially bonded!
How Do I Renew My Bond?
California financing law license bonds expire one year after the issue date. We’ll send you reminders starting 90 days before renewal. All you need to do is pay the premium to extend your bond for another term.
Can I Make Changes to My Bond?
If you need to update your information or bond amount, email [email protected]. We’ll issue a bond rider or new bond form, depending on the change.
How to Become a Finance Lender or Broker in California
First, you need to maintain the following net worth:
- Non-residential broker or lender: $25,000
- Broker that only arranges residential loans: $50,000
- Broker or lender that makes residential loans: $250,000
Then, follow these steps to apply for your license with the DFPI:
- Purchase a surety bond in the required amount
- Get fingerprinted at a California live scan location
- Complete the “California Financing Law” application on NMLS. The fee is $420
You’ll need to submit a separate branch application for each additional location.
Your license will expire on December 31 annually. The fee to renew is $120.
