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Mortgage Company - Servicer Bond

Texas Mortgage Company and Servicer Bond

SML Chapter 156 companies and Chapter 158 servicer surety

Texas residential mortgage activity is regulated by the Department of Savings and Mortgage Lending. Residential mortgage loan companies under Chapter 156 commonly participate in a recovery-fund path rather than a universal company bond; residential mortgage loan servicers under Chapter 158 must maintain surety (commonly up to $200,000, with a lower path for certain limited portfolios).

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Overview

What Is a Texas Mortgage Company and Servicer Bond?

Texas mortgage-related surety depends on license class — company recovery-fund participation versus residential mortgage loan servicer bonding under Tex. Fin. Code § 158.055.

Key Provisions
  • Guarantees compliance with Tex. Fin. Code ch. 156
  • Tex. Fin. Code § 158.055
  • Protects the obligee named on the Texas bond form
  • Remains subject to the penal sum and bond conditions
Surety Obligation Overview

What Does This Bond Guarantee?

The surety bond guarantees that the principal will perform the duties required under Tex. Fin. Code ch. 156; Tex. Fin. Code § 158.055 up to the penal sum.

Principal
The party required to obtain the bond and perform the underlying obligation.
Obligee
Texas Savings and Mortgage Lending Commissioner
Surety
The company issuing the bond and guaranteeing the obligation to the obligee.

When a claim may arise

A claim may arise if the principal fails to comply with the bonded Texas obligation or causes covered loss to the obligee or protected parties.

If a claim is valid

If a claim is valid, the surety may pay up to the bond penalty according to the bond terms; the principal remains liable to reimburse the surety.

Scope of the Obligation
  • Comply with Tex. Fin. Code ch. 156
  • Tex. Fin. Code § 158.055
  • Satisfy Texas Savings and Mortgage Lending Commissioner filing conditions
  • Maintain the bond for the required term
Bond terms

Bond summary

Amount, premium, term, and the authority that requires this filing.

Eligibility

Who Needs This Bond?

Firms seeking SML residential mortgage loan company or residential mortgage loan servicer credentials — confirm whether your class uses recovery fund, surety, or both.

Who Is Required to File
  • Applicants required by Texas Department of Savings and Mortgage Lending (SML)
  • Texas businesses renewing or expanding licensed activity
  • Out-of-state firms filing into Texas markets
Requirements

What You Need to Apply

Verify your exact SML - NMLS license type, then file the required recovery-fund participation or electronic surety bond (ESB via NMLS for servicers as required by SML rules).

Required Documentation
  1. Legal entity name matching the license or filing
  2. Bond amount: Servicers: up to $200,000 under § 158.055 (limited portfolio path up to $25,000 when applicable). Mortgage companies: confirm current Chapter 156 recovery-fund - financial-assurance path — do not assume a flat broker bond.
  3. Texas obligee form or statute citation
  4. Owner or officer identification for underwriting
Filing

How this filing works

  1. 01

    Confirm the Texas requirement

    Share your license type, court order, or obligee form and the exact penal sum required by Texas Department of Savings and Mortgage Lending (SML).

  2. 02

    Underwrite and price

    We review credit and filing details, then quote premium options through licensed surety markets.

  3. 03

    Issue and file

    Once approved, we issue the bond for delivery to Texas Savings and Mortgage Lending Commissioner or for your Texas filing package.

FAQ

Frequently Asked Questions

What is the required amount for a Texas mortgage company - servicer bond?

The amount is Servicers: up to $200,000 under § 158.055 (limited portfolio path up to $25,000 when applicable). Mortgage companies: confirm current Chapter 156 recovery-fund - financial-assurance path — do not assume a flat broker bond., as set under Tex. Fin. Code ch. 156; Tex. Fin. Code § 158.055 and confirmed with Texas Department of Savings and Mortgage Lending (SML).

Who is the obligee on a Texas mortgage company - servicer bond?

The obligee is typically Texas Savings and Mortgage Lending Commissioner. Always match the exact name on the Texas form.

How long does it take to get the bond?

Many Texas filings can be underwritten the same day when documents and credit are complete; complex amounts may take longer.

Does bad credit prevent approval?

Not always. Premium and collateral options vary by credit and bond size — ask for markets that still write the risk.

How do I renew the bond?

Most bonds renew on the term shown (1 Year). Keep continuity so your Texas license or filing does not lapse.

Authority Resources

Texas Department of Savings and Mortgage Lending (SML)

sml.texas.gov

Next step

Ready to file this bond?

We’ll match the requirement and route the application.

Apply for this bond

Or call (877) 477-7578