An In-Depth Look at the Maryland Foreclosure Bond, Its Cost, and Who Needs One

The Maryland foreclosure bond, also known as the mortgage lender license bond, is an essential requirement for individuals and businesses engaging in the mortgage lending industry within the state. This bond aims to protect the state and consumers from potential financial losses that may arise due to unethical or unlawful actions by mortgage lenders. In this blog article, we’ll take a closer look at what the Maryland foreclosure bond is, its potential cost, and who needs one.

What is a Maryland Foreclosure Bond?

A foreclosure bond is a type of surety bond required by the Maryland Commissioner of Financial Regulation to obtain and maintain a mortgage lender license in the state. This bond functions as a financial guarantee, ensuring that mortgage lenders will adhere to state regulations and guidelines while operating their business. In the event that a mortgage lender fails to comply with these requirements, the bond provides a means of financial recourse for the state and affected consumers.

How Much Does a Maryland Foreclosure Bond Cost?

The cost of a Maryland foreclosure bond, or the bond premium, is a percentage of the total bond amount required. The bond amount for a mortgage lender license in Maryland can range from $50,000 to $150,000, depending on the volume of loans originated by the lender. The actual bond premium that a mortgage lender pays typically starts at 0.5% of the bond amount, depending on various factors such as the applicant’s credit score, financial history, and the underwriting criteria of the surety company issuing the bond.

For example, if a mortgage lender is required to obtain a $100,000 bond and their bond premium rate is 0.5%, they would pay $500 as the bond cost. It is important to note that the bond premium is an annual cost and must be paid to maintain the bond’s validity.

Who Needs a Maryland Foreclosure Bond?

A Maryland foreclosure bond is required for individuals and businesses who wish to engage in mortgage lending activities within the state. This includes mortgage lenders, mortgage brokers, and mortgage servicers who must be licensed by the Maryland Commissioner of Financial Regulation to legally operate their business. The bond requirement aims to ensure that these professionals comply with the state’s regulations, which in turn helps maintain the integrity of the mortgage lending industry and protect consumers from potential financial harm.

How to Obtain a Maryland Foreclosure Bond with American Surety Bonds Agency LLC

To obtain a Maryland foreclosure bond, follow these steps:

1. Determine the required bond amount: The bond amount required depends on the volume of loans originated by the mortgage lender. Consult with the Maryland Commissioner of Financial Regulation to determine the specific bond amount you need.

2. Contact American Surety Bonds Agency LLC: Reach out to our fast, efficient, and friendly team, licensed to issue bonds in the state of Maryland. We will evaluate your financial history, credit score, and other relevant factors to determine your bond premium rate. Thanks to our credit programs, we can accommodate credit scores of every level. Apply Today! Approved Today!

3. Submit the required documentation: Provide American Surety Bonds Agency LLC with the necessary documentation, including your mortgage lender license application and any other required information.

4. Pay the bond premium: Once your bond premium rate has been determined, pay the required amount to American Surety Bonds Agency LLC.

5. Obtain the bond: After the premium is paid, our team at American Surety Bonds Agency LLC will issue the bond—often with same-day service. Submit the bond to the Maryland Commissioner of Financial Regulation as part of your mortgage lender license application.


The Maryland foreclosure bond plays a crucial role in safeguarding the interests of consumers and the state by ensuring that mortgage lenders adhere to state regulations and guidelines. To operate legally as a mortgage lender in Maryland, obtaining and maintaining this bond is a must. By understanding the costs and requirements associated with the foreclosure bond, mortgage lenders can navigate the licensing process smoothly.

Let American Surety help!

American Surety can also assist you with any of your other bonding needs, as we are licensed in all 50 states.  Call us today at (404) 486-2355 or our toll-free number (877) 201-8976 or you can visit our website or find us on Facebook, Twitter, or LinkedIn!

Have Questions?

American Surety Bonds Agency, LLC
138 Hammond Drive, Suite B
Atlanta, GA 30328
Sam Newberry – Managing Member
P: 404-486-2356 M: 404-550-3565