Who requires it
Kentucky Department of Financial Institutions — Mortgage
License & permit · Kentucky
Kentucky Mortgage Lender Bond
Kentucky mortgage loan companies, mortgage loan brokers, and mortgage loan originators must keep a bond for the entire license or registration period. KRS 286.8-060 sets floors of $250,000 for mortgage loan companies and $50,000 for mortgage loan brokers. 808 KAR 12:021 adds individual originator amounts of $15,000 or $20,000 based on annual loan volume, using Forms ML-1 through ML-4 filed through NMLS with the Department of Financial Institutions.
Common bond amount
$15,000 / $20,000 / $50,000 / $250,000
MLO $15,000 or $20,000 by volume; broker ≥ $50,000; company ≥ $250,000 (KRS 286.8-060 / 808 KAR 12:021).
How you file
File electronically through NMLS on Forms ML-1 through ML-4
Renewal
Continuous for the license term; 30-day termination notice to DFI
Who requires it
Licensed Kentucky mortgage loan companies and mortgage loan brokers, plus registered mortgage loan originators who must post or be covered by a qualifying surety under KRS Chapter 286.8. Exempt company paths may still require individual originators to be covered.
How much is required
Companies use a statutory floor of $250,000 on Form ML-1. Brokers use a statutory floor of $50,000 on Form ML-2. The commissioner may prescribe higher amounts. Individual originators who procure their own bond use Form ML-3 at not less than $15,000 when annual loan volume is under $10,000,000, or Form ML-4 at not less than $20,000 when volume is $10,000,000 or greater. An originator may instead be covered by a qualifying employer bond.
How to get and file it
Identify the license type and matching ML form, authorize a Kentucky-authorized surety in NMLS, and submit the electronic bond naming the commissioner with your exact legal name. Keep coverage continuous for the license period. Bonds may not terminate without thirty days’ prior written notice to the commissioner. If the commissioner finds the bond insecure or deficient, a new or supplemental bond must be filed within thirty days of the order.
Cost note
Fifteen thousand to two hundred fifty thousand dollars (or higher if ordered) is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Mortgage loan company
- ≥ $250,000 on Form ML-1
- Mortgage loan broker
- ≥ $50,000 on Form ML-2
- Individual MLO under $10M volume
- ≥ $15,000 on Form ML-3 (or employer coverage)
- Individual MLO $10M+ volume
- ≥ $20,000 on Form ML-4 (or employer coverage)
Official sources
Related resources
Frequently asked questions
Can a Kentucky MLO rely on the employer’s bond?
Yes. KRS 286.8-060 requires each mortgage loan originator to post or be covered by a surety. DFI materials allow coverage through the employer or an independent individual bond on Form ML-3 or ML-4.
When does the MLO amount jump from $15,000 to $20,000?
808 KAR 12:021 uses annual loan origination volume of $10,000,000 as the breakpoint: under $10,000,000 → at least $15,000; $10,000,000 or more → at least $20,000.
Related Kentucky bond guides
Money Transmitter Bond
$500,000–$5,000,000
Kentucky money transmitter applicants and licensees must maintain a surety bond or other security acceptable to the commissioner under KRS 286.11-013. The statutory floor is $500,000. The commissioner may raise the requirement to as much as $5,000,000 based on net worth, transaction volume, or other criteria established by order or rule. Filings typically run electronically through NMLS with the Department of Financial Institutions.
Debt Adjuster Bond
$25,000 / $75,000
Kentucky debt adjusters must register with the Attorney General and maintain a $25,000 surety bond—or an Attorney General–approved irrevocable letter of credit—under KRS 380.040. If the adjuster handles consumer debt secured by a residential mortgage or equivalent interest, the bond or letter of credit increases by $50,000. Coverage must remain in place during registration and for two years after the adjuster stops serving debtors.
Motor Vehicle Dealer Bond
Conditional · up to $100,000+
Kentucky does not make every motor vehicle dealer post a fixed statewide surety. KRS 190.030(9) lets the Motor Vehicle Commission require a bond of up to $100,000 when it doubts an applicant’s financial responsibility or compliance. 605 KAR 1:030 adds a concrete asset path for new, used, motorcycle, automotive mobility, and leasing dealers: show at least $50,000 in unencumbered cash or inventory, and if assets sit between $50,000 and $100,000, obtain a commercial bond for the difference to $100,000. Auction dealers may face higher commission-set amounts.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
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Last verified 2026-08-11. This guide is based on verified educational content and official sources.
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