Who requires it
Illinois Department of Financial and Professional Regulation — Residential Finance
License & permit · Illinois
Illinois Mortgage Broker & Banker Bond
Illinois residential mortgage brokers and mortgage bankers file a surety bond on the same volume-based schedule in 38 Ill. Adm. Code 1050.490, ranging from twenty-five thousand to one hundred fifty thousand dollars. Exempt independent loan processing entities use a flat fifty-thousand-dollar amount. Bonds for these company licenses are filed electronically through NMLS as IDFPR Residential Finance instructs.
Common bond amount
$25,000–$150,000
Brokers and bankers share the same volume schedule; exempt independent loan processing entities use a flat $50,000.
How you file
File electronically through NMLS
Renewal
Keep continuous via NMLS; adjust the amount when volume tier changes
Who requires it
Companies seeking or holding Illinois residential mortgage broker or mortgage banker licenses under IDFPR / NMLS, and exempt independent loan processing entities subject to the flat fifty-thousand-dollar bond. This guide does not create a separate individual mortgage loan originator bond page; MLO licensing is a distinct credential—confirm any individual bonding questions with IDFPR.
How much is required
Rule 1050.490 sets one volume scale for both brokers and bankers, with amounts from $25,000 to $150,000 based on the activity measures the rule defines. Exempt independent loan processing entities are carved out of that sliding scale and post a flat $50,000. Use the current IDFPR surety bond requirements PDF and NMLS checklist to pick the correct tier for your filing year.
How to get and file it
Calculate the required amount from the IDFPR volume schedule (or use the flat fifty-thousand-dollar amount if you are an exempt independent loan processing entity). Arrange an electronic surety bond through NMLS with an authorized surety, matching the exact legal name on the company license record. Keep the electronic surety bond active for the entire license term and increase the amount when volume moves you into a higher Rule 1050.490 tier. Follow NMLS and IDFPR renewal deadlines; replace coverage before cancellation so the company license does not lapse for lack of security.
Cost note
Twenty-five thousand to one hundred fifty thousand dollars (or the flat fifty-thousand-dollar processor amount) is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Broker / banker scale
- $25,000 to $150,000 under 38 Ill. Adm. Code 1050.490
- Independent loan processors
- Flat $50,000 for exempt independent loan processing entities
- Filing channel
- Electronic surety bond through NMLS per IDFPR instructions
- Same schedule
- Mortgage brokers and mortgage bankers use the same volume tiers
Official sources
Related resources
Frequently asked questions
Do mortgage brokers and bankers post different bond amounts?
Not by license title alone. Rule 1050.490 applies the same volume-based schedule to brokers and bankers. Your amount depends on the activity measures in that schedule, not on whether the company is labeled broker or banker.
Is there a separate individual MLO bond guide?
No. This page covers company residential mortgage broker, banker, and exempt independent loan processing sureties. Individual mortgage loan originator licensing is handled separately through IDFPR / NMLS; do not assume an individual MLO bond from this guide.
Related Illinois bond guides
Money Transmitter Bond
$100,000–$2,000,000
Illinois money transmitters licensed under the Money Transmission Modernization Act must maintain security equal to the greater of one hundred thousand dollars or one hundred percent of average daily money transmission liability in Illinois, subject to a two-million-dollar maximum. Section 10-2 of 205 ILCS 658 sets that formula, and IDFPR expects electronic surety filing through NMLS for the 2026 licensing cycle.
Collection Agency Bond
$25,000
Illinois collection agencies licensed under the Collection Agency Act must maintain a twenty-five-thousand-dollar continuous surety bond under 205 ILCS 740/8. The bond may not be cancelled without at least sixty days’ notice. Debt buyers collecting only accounts they own are outside this bond requirement. The Act remains in force after Senate Bill 2457 removed the former sunset; it was not repealed.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Illinois application
Illinois 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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