Who requires it
Alabama State Banking Department — Bureau of Loans
License & permit · Alabama
Alabama Mortgage Broker / Lender Bond
Alabama mortgage brokers and residential consumer-credit lenders that fall under the SAFE Act framework must keep a State Banking Department–prescribed bond in force. The company bond can also cover mortgage loan originators who are employees or exclusive agents of that licensee, and the required amount must reflect the dollar volume of loans originated as the supervisor determines.
Common bond amount
Volume-based (Banking Department)
The required amount must reflect loan originations as determined by the supervisor under § 5-26-14—confirm the live NMLS / Bureau of Loans figure for your volume.
How you file
File electronically through NMLS; company bond may cover employed or exclusive-agent originators
Renewal
Keep in force while licensed; replace after claims when the supervisor requires
Who requires it
Companies seeking or holding Alabama Mortgage Brokers Licensing Act licenses or Consumer Credit Act licenses used for residential mortgage lending through NMLS, and the mortgage loan originators those company bonds are intended to cover. Individual MLO bonding is not required separately when the sponsoring company’s bond already covers that originator under § 5-26-14.
How much is required
Section 5-26-14 of the Alabama SAFE Act requires the amount to reflect the dollar amount of loans originated, as determined by the supervisor. The Mortgage Brokers Licensing Act and Consumer Credit Act authorize the department to require that bond—running to the State of Alabama for persons damaged by breach or law violations—when needed to satisfy SAFE Act financial-responsibility rules, including instead of the acts’ $25,000 tangible net-worth showings.
How to get and file it
Work with a surety authorized in Alabama on the bond form the Bureau of Loans / NMLS checklist currently requires. Size the amount to the volume band the department assigns for your prior-year or anticipated originations, file through NMLS with the company license record, and keep the name identical to the MU1 legal name. Maintain coverage while licensed. When an action is commenced on the bond, or after a recovery, the supervisor may require a new bond immediately. Recalculate the amount when reported loan volume moves you into a different department-determined band at renewal.
Cost note
The supervisor-set figure is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Amount logic
- Reflects dollar amount of loans originated as determined by the supervisor
- Company coverage
- May cover MLOs who are employees or exclusive agents of the bonded licensee
- Filing path
- NMLS mortgage broker / residential consumer-credit company licensing
Official sources
Related resources
Frequently asked questions
Do Alabama mortgage loan originators need their own bond?
Not when they are employees or exclusive agents of a Mortgage Brokers Licensing Act or Consumer Credit Act company whose surety already covers them under § 5-26-14. Confirm sponsorship and coverage with the Bureau of Loans if your arrangement is unusual.
Is the surety the same as the $25,000 net-worth requirement?
No. The Mortgage Brokers and Consumer Credit Acts describe a $25,000 tangible net-worth showing and separately authorize a department-required surety to meet SAFE Act obligations. Follow the current NMLS checklist for which combination applies to your license type.
Related Alabama bond guides
Money Transmitter Bond
$100,000 minimum
Money transmitters licensed under Alabama’s Monetary Transmission Act must keep Commission-acceptable coverage—commonly a surety bond on Form USB—sized to a statutory floor. The amount is never less than $100,000, and it rises when the outstanding-obligations formula produces a higher figure, up to a $5,000,000 Commission ceiling.
Motor Vehicle Dealer Bond
$50,000
Alabama Department of Revenue Motor Vehicle Division licenses for dealers and several related credentials rest on one $50,000 Motor Vehicle Surety Bond. Form MVT 4-3 names the Commissioner of Revenue, covers the checked license boxes on the form, and also covers designated-agent duty for licensed dealers.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Alabama application
Alabama will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-11. This guide is based on verified educational content and official sources.
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