Who requires it
Vermont Department of Financial Regulation — Banking Division
License & permit · Vermont
Vermont Licensed Lender and Mortgage Broker Bond
Vermont licensed lenders, mortgage brokers, mortgage loan originators, and loan solicitation companies file sureties under 8 V.S.A. § 2203 before the Department of Financial Regulation issues the matching chapter 73 license. The Commissioner sets faces from Vermont loan-origination volume, subject to statutory floors: licensed lenders post at least fifty thousand, one hundred thousand, or one hundred fifty thousand dollars depending on annual originations; mortgage brokers post at least twenty-five, fifty, seventy-five, or one hundred thousand dollars on a separate volume ladder; and loan solicitation licensees maintain at least twenty-five thousand dollars unless the Commissioner requires more. A single bond may cover multiple offices for the same person. Employed mortgage loan originators may rely on the licensed lender’s or broker’s bond when that instrument covers each originator in the prescribed amount. Sureties must give sixty days’ written notice before terminating. After a claim action starts, the Commissioner may require a new bond, and any recovery triggers an immediate replacement. Lenders making only commercial loans fall outside this section. Separate liquid-asset showings apply to lender applicants and are not a substitute for the surety. The Commissioner may waive or modify bond or liquid-asset amounts in appropriate cases.
Common bond amount
$25,000–$150,000
Lender $50k/$100k/$150k; broker $25k/$50k/$75k/$100k; loan solicitation ≥ $25k (8 V.S.A. § 2203). Commissioner may modify.
How you file
File electronically through NMLS with the Department of Financial Regulation
Renewal
Maintain while licensed; 60-day cancel notice; replace after claim action/recovery
Who requires it
Applicants for and holders of Vermont licensed lender, mortgage broker, mortgage loan originator, or loan solicitation credentials under 8 V.S.A. chapter 73 filing with DFR through NMLS—other than commercial-only lenders excluded by § 2203(g).
How much is required
Match your license class to the 8 V.S.A. § 2203 schedule for Vermont annual originations. Lender floors: $50,000 (up to $1M), $100,000 ($1M.01–$15M), $150,000 (over $15M). Broker floors: $25,000 (up to $2M), $50,000 ($2M.01–$5M), $75,000 ($5M.01–$15M), $100,000 (over $15M). Loan solicitation: not less than $25,000. Confirm any Commissioner increase or waiver before filing.
How to get and file it
Confirm the class and volume tier, arrange a Commissioner-approved surety through the NMLS electronic surety bond process, and keep coverage aligned with every Vermont office on the license. Keep the bond in force for the entire license term. Give or receive sixty days’ notice before any surety termination. Replace the bond promptly after claim action or recovery. Resize when Vermont origination volume pushes you into a higher statutory floor.
Cost note
The schedule figure is the required bond amount, not the premium you pay. Lender liquid-asset requirements are separate capital showings. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Licensed lender floors
- $50,000 / $100,000 / $150,000 by annual VT loan originations
- Mortgage broker floors
- $25,000 / $50,000 / $75,000 / $100,000 by annual VT mortgage originations
- Loan solicitation
- Not less than $25,000 (or other amount Commissioner requires)
- MLO coverage
- Employer lender/broker bond may satisfy when it covers each originator
- Related (not a bond substitute)
- Lender liquid assets ≥ $25,000 (or $50,000 for commercial lending applicants)
Official sources
Related resources
Frequently asked questions
Do commercial-only lenders need this bond?
8 V.S.A. § 2203(g) says this bonding section does not apply to a lender making only commercial loans. Confirm with DFR how your mix of consumer and commercial activity is classified.
Can one bond cover my Vermont branches?
Yes. When one person holds licenses for the same activity at more than one office, the Commissioner may accept a single bond covering all such offices.
Related Vermont bond guides
Money Transmitter Bond
$100,000–$2,000,000
Vermont money transmission licenses turn on security under 8 V.S.A. § 2541, added with the July 1, 2024 money-services rewrite. Applicants and licensees must keep a Commissioner-satisfactory surety—or, only with Commissioner approval, a qualifying deposit—payable to the State for Vermont claimants and authorized-delegate exposure. Size the device by taking the larger of one hundred thousand dollars and one hundred percent of average daily Vermont money transmission liability for the most recently completed three-month stretch, stopping at two million dollars. Companies already at that two-million-dollar ceiling need not keep recalculating average daily Vermont liability for this section. Claim coverage must remain effective at least five years after the licensee stops providing money services in Vermont, though the Commissioner may allow reductions as outstanding Vermont obligations shrink. File through NMLS on DFR’s money-services path.
Debt Adjuster Bond
≥ $50,000
Vermont debt adjusters must file a surety with the license application under 8 V.S.A. § 2755. The statute sets fifty thousand dollars as the starting amount—or such greater amount as the Commissioner decides the applicant’s business circumstances require—on a form and terms the Commissioner directs. The bond runs to the State for Vermont claimants and secures faithful performance of the licensee’s obligations. The Commissioner may raise the amount after a pattern of bona fide consumer-complaint misconduct, or may increase or decrease it based on financial condition, business plan, number of locations, and the actual or estimated aggregate payments and fees debtors pay under debt-adjustment contracts. DFR’s debt-adjuster licensing page lists the fifty-thousand-dollar bond among application prerequisites and routes new company filings through NMLS electronic surety bonds.
Motor Vehicle Dealer Bond
$20,000–$35,000
Vermont will not issue a new or used motor vehicle dealer registration until the applicant posts financial security under 23 V.S.A. § 453(g). The statute accepts a surety bond, a letter of credit, or a certificate of deposit from an entity authorized to transact business in the same state, in an amount between twenty thousand and thirty-five thousand dollars based on units sold in the previous year on a schedule the Motor Vehicle Commissioner sets. Official Form VD-114 publishes that schedule: twenty thousand dollars for fewer than twenty-five vehicles, twenty-five thousand for twenty-five to one hundred, thirty thousand for one hundred one to two hundred fifty, and thirty-five thousand for two hundred fifty-one or more—or for any applicant who was not registered as a dealer in the immediately prior year. The security indemnifies the State and purchasers for fees or purchase-and-use tax the dealer collected but failed to remit. It must remain in force for the pending registration year and one year afterward, and surety liability is limited to the unremitted fees or tax. VD-114 requires claims within one year after the dealer ceases to be licensed or after cancellation, whichever comes first.
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 2026-08-12. This guide is based on verified educational content and official sources.
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