Illinois Exempt Mortgage Company Bond

Illinois requires an exempt mortgage company bond for entities that register as “exempt companies” with the Illinois Department of Financial and Professional Regulation (IDFPR). Filed as an NMLS electronic surety bond (ESB), it safeguards the public if an exempt company breaks state rules. Bond amount depends on prior‑year Illinois loan volume under §1050.490. Renew annually through NMLS to maintain continuous coverage.

An exempt mortgage company bond is a surety bond Illinois requires from companies that register as an “exempt company” for mortgage activity. The bond guarantees compliance with state law and covers the conduct of sponsored mortgage loan originators (MLOs). If the company violates regulations and causes losses, the obligee can claim on the bond. The bond is payable to IDFPR, includes a 30‑day cancellation notice, and remains concurrent with your registration.

Premiums typically range from 1–5% of the bond amount, depending on credit and financials. Illinois sets the bond amount by the company’s prior‑year Illinois loan volume using five tiers: $25,000, $50,000, $75,000, $100,000, or $150,000. Because your volume can change, check your tier each year to keep adequate coverage on file.

Realistic cost examples:

• $25,000 bond → ~ $250 at 1% or ~$1,250 at 5%.
• $75,000 bond → ~ $750 at 1% or ~$3,750 at 5%.
• $150,000 bond → ~ $1,500 at 1% or ~$7,500 at 5%.
• Premiums reflect underwriting; better profiles trend toward the lower end of the range.

Start online, finish fast. We collect basic details, underwrite your profile, and issue the ESB so you can file through NMLS without delays. Our team guides you through the required Illinois state form and coordinates delivery to IDFPR, helping you avoid common filing mistakes and coverage gaps.

Steps to complete your filing:

1. Begin with our online application for quick review.
2. Receive a firm quote after underwriting; approve to bind a surety bond as an ESB.
3. File the NMLS/State Form and ensure the Exempt Entity Processor ESB is delivered in your NMLS record.

Expect reminders ahead of your annual cycle. Approve the renewal ESB in NMLS so coverage remains continuous; maintain accurate company and sponsorship data to avoid holds. For more information see our page on Illinois surety bonds.

Yes. We offer flexible underwriting that considers the full picture—experience, finances, and mitigations—not just a score. You’ll see transparent pricing and clear next steps, with rapid updates from quote to filing. If you’re new to bonding or terminology, our

Our surety bonds questions page answers common questions so you can apply with confidence but to strengthen your application:

• Share recent financials and any improvements (e.g., paid‑down debts, stronger cash flow).
• Provide context for credit issues and steps taken to remediate them.
• Keep NMLS and IDFPR records current to speed approval.

Is a bond required for Illinois “exempt company” registration?

Yes. Exempt companies must maintain an exempt mortgage company bond for the entire time their registration is active. The bond is filed electronically through NMLS and includes a 30‑day cancellation provision. Maintaining continuous coverage is essential; a lapse can disrupt your registration or lead to regulatory action, so plan ahead for renewals and coordinate with your surety on timing.

How is my bond amount determined?

Illinois uses the prior‑year Illinois residential mortgage loan volume to assign one of five tiers: $25,000, $50,000, $75,000, $100,000, or $150,000. Recalculate annually so the bond on file always meets the required tier. As production grows, your amount may increase at the next renewal. Accurate reporting helps avoid delays and ensures your NMLS record reflects the correct bond amount.

Who is the obligee and where do I file?

The Illinois Department of Financial and Professional Regulation (IDFPR) is the obligee. Your surety issues the electronic surety bond and delivers it to your NMLS record using the state’s instructions. Keep contact details current, respond promptly to regulator requests, and remember cancellations require 30 days’ notice to IDFPR.

Lance Surety Bonds. (n.d.). Illinois surety bonds.
https://www.lancesuretybonds.com/bonds-by-state/illinois 

Lance Surety Bonds. (n.d.). Surety bonds FAQs. 
https://www.lancesuretybonds.com/learn/faqs 

Lance Surety Bonds. (n.d.). What is a surety bond?
https://www.lancesuretybonds.com/learn/what-is-a-surety-bond 

Lance Surety Bonds. (n.d.). Online application
https://www.lancesuretybonds.com/surety-bond-quote 

Cornell Law School Legal Information Institute. (n.d.). 38 Ill. Admin. Code § 1050.490.
https://www.law.cornell.edu/regulations/illinois/Ill-Admin-Code-tit-38-SS-1050.490 

Nationwide Multistate Licensing System & Registry. (n.d.). Illinois Exempt Entity Processor Registration ESB (state form).
https://mortgage.nationwidelicensingsystem.org/slr/StateForms/IL_Exempt%20Entity%20Processor%20Registration%20ESB_v1.pdf 

Illinois Department of Financial and Professional Regulation. (n.d.). Exempt Entity Processor ESB.
https://idfpr.illinois.gov/content/dam/soi/en/web/idfpr/banks/resfin/forms/exemptentitybond.pdf