You’re in good hands with the FIRST Surety Bond Producer (that’s us) that was authorized within the NMLS to issue Electronic Surety Bonds (ESB). 

Curious how the NMLS ESB started? Check out this interactive timeline.

Below you’ll find some of the commonly asked questions that we’ve encountered with our mortgage customers. If you have your own question, please let us know. Our team would love to help you in any way that we can.

FAQ

+ What license types are transitioning to Electronic Surety Bond (ESB) Tracking?

A list of licenses accepting NMLS ESB can be found here: Licenses Accepting NMLS ESB. These license types are required to convert their surety bond to NMLS by the mandatory/option dates listed.

+ What states are participating in the ESB Tracking through NMLS?

As of 9/7/2016, 9 states announced adoption of ESB through NMLS. Those states are: Idaho, Indiana, Iowa, Massachusetts, Texas, Vermont, Washington, Wisconsin, and Wyoming. 

As of 12/30/2016, 11 more states announced adoption of ESB. Those states are: Alaska, Montana, North Dakota, South Dakota, Minnesota, Louisiana, Mississippi, Illinois, Georgia, North Carolina, and Rhode Island.

As of 4/15/2017, Oregon will be the next state to adopt ESB.

+ Why are some license types transferring to the ESB and not others within a given state?

Some states, such as Indiana, have decided to roll all licenses managed within the NMLS over to the ESB process. The thought process was to ensure that all license types were managed in a singular capacity within the ESB process.

Other states, such as Washington, are testing the functionality with a single license type to ensure that workflow and processes are worked out and will then roll over remaining divisions or license types.

All other license types within those jurisdictions that require a surety bond will continue with the paper processes that are currently in use.

+ What if my state/license type is not listed?

If your state/license type is not listed on the NMLS ESB Adoption Map/Table, this means you will still be able to submit a paper surety bond for new applications and license/bond renewals.

+ Will the electronic surety bond form look different in NMLS?

Yes, the bond form has been replaced with an electronic version and there will no longer be a paper version. A PDF copy can be downloaded for filing and record keeping outside of the NMLS. Many of initial participating regulators have made changes to the bond language such as:

  •         Replaced the city, county, and state with the Unique NMLS Identification Number
  •         Added language to cover all properly registered trade names
  •         Removed corporate seal and power of attorney

+ What is the difference between the Conversion Deadline and the Mandatory New Application?

The Conversion Deadline will apply to all existing surety bonds of that license type that must be converted from paper copy to an electronic version. Right now, it is the responsibility of the Surety Company to convert those bonds, but you must first appoint your Surety Bond Producer (also known as your insurance broker/bonding agent) within the system. Going forward, all renewal, changes, cancellations, or reinstatements will be done electronically through the NMLS.

The Mandatory New Application date refers to when the state will no longer accept a paper surety bond for that license type. After the dates listed on the table, all surety bonds for that license type will have to be issued online through one of the approved Surety Companies and Surety Bond Producers within the NMLS.

+ What if my Surety Company or my Surety Bonding Producer isn’t listed as an option on the NMLS System?

There are no special requirements for a Surety Company or a Surety Bond Producer to gain access online. They simply need to apply and provide the necessary documents to prove their licensing and good standing in any given state. If you can’t find your Surety Bond Producer, you’ll need to select from an authorized company instead; such as Surety Solutions, LLC. Here is a list of the authorized Surety Bond Producers.

+ If I am a licensee and one of my licenses is listed on the NMLS ESB Adoption Map/Table, what do I need to do to start the ESB process?

Licensees must first grant authority to their Surety Bond Producer entity in NMLS. Here is a video on how to do this: Granting Authority to Surety Entity in NMLS.

+ Where can I find a list of surety bond companies/surety bond producers authorized in the NMLS to issue bonds for the participating states?

+ If I am a licensee, what happens after I grant authority to my surety bond provider?

After you grant authority, the bond creation/execution process will begin. Your bond will be entirely managed through the NMLS. You can learn more about the process here:

+ If I am a surety bond company or surety bond producer, how do I get approved in the NMLS to provide Electronic Surety Bonds?

Surety bond companies and producers will need to complete Phase I and Phase II of the ESB process in the NMLS.

See It All Step By Step

Learn the need to know processes for your electronic bonds.

Signing Bonds and Submitting to the Regulator

Granting Authority to a Surety Entity

Signing a Bond Rider

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Source: “http://mortgage.nationwidelicensingsystem.org”

This information is subject to change and should not be used in the place of the NMLS.