Since Electronic Surety Bonds (ESBs) were launched by the National Multistate Licensing System and Registry (NMLS) in September 2016, many professionals in the mortgage and financial services industries are now required to use ESBs. Thankfully, this process is much more convenient and efficient than traditional paper surety bonds.
With the addition of the Oregon Division of Financial Regulation later this week (April 15, 2017), 22 state agencies across the country will have adopted ESBs. To view the complete list of states that have adopted the ESB process, view the ESB Adoption Map and Table, which also includes a detailed listing of which types of licenses are required to utilize ESBs in each state. Examples of licenses now utilizing the NMLS Electronic Surety Bonds process include:
• Mortgage Brokers/Lenders/Servicers
• Money Transmitters
• Debt Management/Collection Agencies
• Check Cashiers
• Consumer Finance Lenders
In addition to new applicants, existing licensees must convert their paper bonds to ESBs by the conversion deadline listed for each state.
Although this new process provides many benefits, it requires some steps to get started. The steps of the ESB process are as follows:
1. Licensees must first grant their bond provider (broker) access to work on their behalf in the NMLS.
2. Once authorization is granted, licensees will continue to make requests via normal channels as they have in the past.
3. The bond provider will complete each request within the NMLS and the licensee will be automatically prompted to review and complete.
4. Upon completion, the item is made available to the appropriate state regulator.
For more information or to get a license surety bond quote, visit our Electronic Surety Bonds page.