Consumer Loan Companies Surety Bond Requirements

All Consumer Loan licensees conducting origination, lending or student loan servicing activities are required to have an Electronic Surety Bond (ESB) on file. The amount of the ESB is determined annually by loan origination or student loan servicing volume in Washington. See the tables below for the bonding amounts under the Consumer Loan Act (CLA).

How to Determine Bond Amount

For Consumer Loan License Applicants

$30,000 brokering, lending or student loan servicing applicants*

No bond requirement for residential mortgage loan servicers or master servicers unless applicant elects to use an ESB in lien of the required net worth. See WAC 208-620-320(3)(b).

* Applicants who held a Washington license in the previous calendar year must use loan volume from that year to determine bond amount.

For Current Consumer Loan Licensees

Only licensees conducting origination or lending activities must evaluate and possibly adjust their bond amount annually, Determine bond amount in conjunction with filing the Consumer Loan Annual Assessment, File rider to adjust bond amount by March

Loan Volume in Millions Bond Amount
$0-$20 $30,000
$20-$40 $50,000
$40-50 $100,000
$50+ $150,000

Surety Bond Forms

Effective January 2017, the Department uses the Electronic Surety Bond (ESB) functionality in NMLS for surety bonds. The process involves the surety provider having a surety account on NMLS, the applicant/licensee granting access to the surety provider and the surety provider issuing the bond electronically through NMLS. A paper bond form is no longer accepted. See Electronic Surety Bond Information

Frequently Asked Questions

When can I adjust my bond amount?

Only Consumer Loan licensees conducting origination or lending activities must adjust their bond amount. Bond adjustment must be done in conjunction with filing the Consumer Loan Annual Assessment due by March 1. Delivery of bond rider to adjust bond amount must be delivered in NMLS at that time.

How do I increase or decrease my bond amount?

Contact the insurance company which issued your bond. In most cases, they will issue a bond rider which either increases or decreases the amount of your bond. The rider will be issued electronically through NMLS but still requires you to submit the rider to the regulator through NMLS.