NMLS Resource Center
Surety Industry
Purpose of Electronic Surety Bond Tracking / NMLS Trainings
Many state laws or regulations require financial services licensees to obtain a surety bond as a condition of licensure. State regulators or consumers can file claims against a surety bond to cover fines or penalties assessed or to provide restitution to consumers due to the failure of a licensee to comply with licensing or statutory requirements.
In addition, Title V of P.L. 110-289,theSecure and Fair Enforcement for Mortgage Licensing Act of 2008(“SAFE Act”)requires that applicants have met “…either a net worth or surety bond requirement, or paid into a State fund…” in 12 USC §5104(b)(6). In 2014, 48 state agencies required mortgage loan originators to either have their own surety bond or be covered under a company’s surety bond in order to originate mortgages. (The remaining agencies have established a state recovery fund.) State regulations define the specific surety bond requirements (e.g. amount of coverage) that must be satisfied in order to obtain, maintain, and renew a license in the state.
In 2014, 177 license authorities managed on NMLS required the company to obtain and maintain a surety bond as a condition of licensure. As more state agencies choose to manage license authorities on NMLS, SRR expects this number to grow.
One of the primary goals of NMLS is to serve as the comprehensive system of record for licensing information. Electronic Surety Bond Tracking in NMLS will allow for the tracking of surety bond requirements and the maintenance of surety bond information validated by authorized Surety Companies and/or Surety Bond Producers.
SeeAbout NMLSfor additional information on the System. / If you do not have an LMS account, click here for instructions on how to register.
Surety New User Training – Phase II
NMLS will hold a complimentary training session for Surety Companies and Surety Bond Producers on the upcoming NMLS ESB enhancements (Phase II). The session will include an overview of the account management process, a demonstration of bond creation and management in NMLS, and resources available on the NMLS Resource Center. The webinar will include a live question and answer opportunity.
Wednesday, August 24, 2016
2:30 – 4:00 p.m. ET
Click here to log in to the LMS and enroll in the webinar. A recording will also be made available within 5 business days of the training session.
ESB Phase I Training – Recording
A recorded training session held for Surety Company Account Administrators on the Phase I NMLS functionality. The session included an overview of the Phase I initiative, resources available on the NMLS Resource Center, and a demonstration of the NMLS functionality.
Click the links below to access the recordings related to each entity type.
Phase 1 for Surety Companies
Phase 1 for Surety Producers
Related Resources
NMLS Account Creation Work Flow Diagram
A visual aid highlighting the account creation process with step-by-step details and interactive links to applicable Quick Guides.
NMLS Association Process Diagram
A visual aid highlighting the association process between a surety company and a surety bond producer with interactive link to applicable Quick Guides.
Terms and Definitions
Process Overview
SRR will be supporting the submission of Electronic Surety Bond Tracking through NMLS. The first phase of this effort began January 25, 2016 with the implement of account creation and association for surety companies and surety bond producers. The second phase will beginSeptember 12, 2016 at which time SRR will implement bond issuance, tracking, and maintenance for select states.Following Phase I and II, SRR will continue to evaluate the functionality to determine appropriate enhancements to meet industry needs.
Click the buttons below to learn more about the necessary information required as part of Phase I and Phase II.
[AR1]
State Adoption
Currently, eight states have publicly announced adoption of ESB in 2016, with additional states planning to announce soon. See the ESB Adoption Table for a list of those agencies and the required transition dates.
Commonly Asked Questions
Q: What report(s) will be available to assist with bond management?
A Transaction Report will be available for surety companies and surety bond producers. The reports will provide a record of all actions taken in the system, including bond execution by party (Surety and Licensee), bond delivery to regulator, bond status (Notice of Cancellation, Cancellation Notice Rescinded, Cancelled, and Reinstated) and Broker of Record Changes. Surety companies will also be able to filter by underwriter. The reports are updated nightly and will contain information that reflects the previous business day.
Surety Bond Transaction Report (Surety Company) Sample
Surety Bond Transaction Report (Surety Bond Producer) Sample
Q: How many user accounts can be created to assist with managing my surety entity in NMLS?
Surety entities on NMLS are required to provide two Account Administrators when completing the account creation process. Account Administrators are granted full access to the entity's NMLS account and have access to all available functionality. Account Administrators can also create Organization User accounts to grant additional staff access to the entity's account. There is no limit to the number of Organization Users per entity.
Q: How can I allow additional users access to complete certain tasks in NMLS?
Through the creation of Organization Users (see question above), additional staff may be assigned roles granting them access to specific functionality in NMLS. There is no limit to the number of roles that may be assigned to one Organization User.
See theSurety Company User Type and Roles Quick Guidefor additional information related to surety company entities. See theSurety Bond Producer User Types and Roles Quick Guidefor additional information related to surety bond producer entities.
Q: What are the available processes that can be completed in the NMLS for surety entities?
To better understand the purpose and available processes in NMLS, please reference the diagrams provided below.
Electronic Surety Bond Overview Surety Bond Producer Account Creation Process
Surety Company Account Creation Process Surety Entity Account Management
Association Creation Process Licensee Grant Authority to Surety Entity Process
Surety Bond Creation Process Surety Company Bond Execution Process
Surety Bond Producer Bond Execution Process Surety Bond Management
Surety Bond Rider Creation Process Broker of Record Change Process[AR2]
Surety Company Account Request and State Authorizations Form
Surety Bond Producer Account Request and State Authorizations Form
Each state agency will determine when they will begin accepting electronic surety bonds and their deadline for the transition of existing bonds in NMLS. Check the ESB Adoption Map and Table for a list of agencies who have announce adoption of NMLS ESB.
NMLS Resource Center
Surety Bond Producer
Process Overview / Surety Bond Producer Resources
For more information regarding the purpose of Electronic Surety Bonds (ESB), the state adoption process including the states, license types, and required transition dates, see the Surety Industry page[AR3]. For information regarding surety company processes, see the Surety Company page[AR4].
Phase I
Download theSurety Bond Producer Account Request and State Authorizations Formto help your company gather the necessary information required as part of Phase I. Follow the steps outlined in the getting started section below to begin the account creation process. For further guidance regarding Phase I, please reference the NMLS Training section on the Surety Industry pageto access the Phase I training session recording.
Phase II
On September 12, 2016, NMLS will begin receiving and tracking Electronic Surety Bonds (ESB) through the System. In preparation, NMLS will hold a complimentary training session for Surety Companies and Surety Bond Producers on the upcoming NMLS ESB enhancements (Phase II). The session will include an overview of the account management process, a demonstration of bond creation and management in NMLS, and resources available on the NMLS Resource Center. The webinar will include a live question and answer opportunity.
Surety New User Training – Phase II
Wednesday, August 24, 2016
2:30 – 4:00 p.m. ET
Click here to log in to the LMS and enroll in the webinar. A recording will also be made available within 5 business days of the training session.
If you do not have an LMS account, click here for instructions on how to register.
For a summary of the available process that will be available in Phase II, please reference the Commonly Asked Questions section of the Surety Industry page. / Phase I Training Guides
NMLS Account Creation Work Flow Diagram
A visual aid highlighting the account creation process with step-by-step details and interactive links to applicable Quick Guides.
NMLS Association Process Diagram
A visual aid highlighting the association process between a surety company and a surety bond producer with interactive link to applicable Quick Guides.
Surety Bond Producer Account Creation Quick Guide
A detailed guide for the surety bond producer account creation process.
Surety Bond Producer Account Request and State Authorizations Form
A sample form detailing necessary information as part of the surety bond producer account request and state authorizations process.
Surety Entity Account Management Quick Guide
A detailed guide for account management within NMLS.
Surety Bond Producer Amendment Quick Guide
How to update your record in NMLS.
Accepting Associations – Surety Bond Producer Quick Guide
How to accept surety company initiated associations from a surety bond producer’s perspective.
Phase II Training Guides will be made available on September 1st, 2016.[AR5]
What do I need to do to get started?
Step 1: Request a Surety Bond Producer account in NMLS
- Review theSurety Bond Producer Account Creation Quick Guideand prepare the File Attachment.
- Complete the account request by click the Surety Bond Producer Account Request button below.
- SRR will review the request within 5-7 days. Once the request has been processed, you will received a login to complete the account set up.
- Create Organization Users (OU) and designate representatives for the surety bonding process. Use theSurety Entity Account Management Quick Guidefor step by step instructions.
- Notify all relevant surety companies that they will need to create accounts in NMLS as well, in order to participate in NMLS ESB.
- Associations will be created by the surety company, but will need to be accepted by the surety producer. Use the Accepting Associations – Surety Bond Producer Quick Guide for step by step instructions.
NMLS Resource Center
Surety Company
Process Overview / Surety Company Resources
For more information regarding the purpose of Electronic Surety Bonds (ESB), the state adoption process including the states, license types, and required transition dates, see the Surety Industry page. For information regarding surety bond producer processes, see the Surety Bond Producer page.
Phase I
Download theSurety Company Account Request and State Authorizations Formto help your company gather the necessary information required as part of Phase I.Follow the steps outlined in the getting started section below to begin the account creation process. For further guidance regarding Phase I, please reference the NMLS Training section on the Surety Industry pageto access the Phase I training session recording.
Phase II
On September 12, 2016, NMLS will begin receiving and tracking Electronic Surety Bonds (ESB) through the System. In preparation, NMLS will hold a complimentary training session for Surety Companies and Surety Bond Producers on the upcoming NMLS ESB enhancements (Phase II). The session will include an overview of the account management process, a demonstration of bond creation and management in NMLS, and resources available on the NMLS Resource Center. The webinar will include a live question and answer opportunity.
Surety New User Training – Phase II
Wednesday, August 24, 2016
2:30 – 4:00 p.m. ET
Click here to log in to the LMS and enroll in the webinar. A recording will also be made available within 5 business days of the training session.
If you do not have an LMS account, click here for instructions on how to register.
For a summary of the available process that will be available in Phase II, please reference the Commonly Asked Questions section of theSurety Industry page. / Phase I Training Guides
NMLS Account Creation Work Flow Diagram
A visual aid highlighting the account creation process with step-by-step details and interactive links to applicable Quick Guides.
NMLS Association Process Diagram
A visual aid highlighting the association process between a surety company and a surety bond producer with interactive link to applicable Quick Guides.
Surety Company Account Creation Quick Guide
A detailed guide for the surety company account creation process.
Surety Company Account Request and State Authorizations Form
A sample form detailing necessary information as part of the surety company account request and state authorizations process.
Surety Entity Account Management Quick Guide
A detailed guide for account management within NMLS.
Surety Company Amendment Quick Guide
How to update your record in NMLS.
Managing Associations – Surety Company Quick Guide
How to create associations within NMLS from a surety company’s perspective.
Surety Company Association Upload XML Specification
NMLS will accept an upload for bulk association management in a properly formatted XML file. Visit this document for details.
Phase II Training Guides will be made available on September 1st, 2016.[AR6]
What do I need to do to get started?
Step 1: Request a Surety Company account in NMLS
- Complete the limited account request by click the Surety Company Account Request button below.
- You will be able to indicate if you are aHolding Companies on the request form and will not be required to provide an NAIC number.
- SRR will review the request within 5-7 days. Once the request has been processed, you will received a login to complete the account set up.
- Review theSurety Company Account Creation guide and prepare the File Attachment.
- If writing papers will be used for sureties other than the entity name on the account, list these companies under the “Underwriting Companies” section.
- Notify all relevant surety bond producers that they will need to create accounts in NMLS as well, in order to participate in NMLS ESB.
- Create an association with each surety bond producer that will be authorized to create bonds on your behalf through NMLS ESB. Use the Managing Associations – Surety Company Quick Guide for step by step instructions.
[AR1]These buttons will need to be linked to their respective new pages that are being created.
[AR2]These process workflows will be hyperlinked in the backend library this weekend and will be ready to access Monday 8/22 morning. They have been reviewed by Margo, Yang, and Reece.
[AR3]Needs landing page hyperlink – same throughout this page and the Surety Company page
[AR4]Needs new page hyperlink- same throughout this page and the Surety Company page.
[AR5]The new guides have been drafted but are currently under review. Potentially will be ready by 8/24.
[AR6]The new guides have been drafted but are currently under review. Potentially will be ready by 8/24.