The Mortgage Bankers Bond, placed by underwriters who know the form.
Specialist placement of fidelity, crime, and Mortgagee's Errors & Omissions coverage for mortgage lenders and servicers nationwide.
One bond, three sections of protection.
The Mortgage Bankers Bond is purpose-built for the mortgage lending and servicing business. Rather than a plain employee-dishonesty policy, it brings fidelity, crime, insider, and Mortgagee's Errors & Omissions coverage together in a single bond — typically with separate limits of indemnity.
Fidelity & Crime
Protection against direct loss from dishonest or fraudulent acts and a range of crime perils.
- Employee dishonesty and theft of money, securities, and property
- On-premises and in-transit loss
- Forged checks, forged documents, and counterfeit currency
- Fraudulent real property mortgages and computer manipulation
Insider & Closing-Agent
Coverage reaching parties beyond rank-and-file employees who can cause a lender loss.
- Theft by directors, partners, and major shareholders
- Dishonest acts of attorneys and loan closing agents
- Theft of a warehouse lender's money or collateral
- Loss tied to secondary-market and custodial relationships
Mortgagee's E&O
Protection of the lender's security interest against errors and accidental omissions.
- Failure to obtain or maintain hazard and flood insurance
- Failure to make required investor or agency notifications
- Unpaid real estate taxes and recording errors
- Specified and extended errors & omissions coverage
The Mortgagee's E&O section — and what it does not replace.
One of the most misunderstood features of the Mortgage Bankers Bond is its Errors & Omissions section. It is genuine E&O coverage, written into the bond itself: it responds to losses caused by an error or accidental omission, not only to fraud. If a servicer fails to keep required hazard or flood insurance in force, misses a mandated investor notification, lets real estate taxes go unpaid, or makes a recording error — and the lender's security interest suffers a loss as a result — that is the territory of Section C.
But "Mortgagee's E&O" is precise language, and the precision matters. This coverage protects the lender's interest as a mortgagee — its lien and security interest in the collateral. It is not professional liability coverage for negligent loan origination, disclosure violations, or borrower-facing conduct.
Knowing exactly where the bond's protection ends — and structuring limits and endorsements accordingly — is the difference between an order-taker and an underwriting desk. It is the work we do on every submission.
The bond is shaped by its endorsements.
A mortgage bankers bond is rarely placed as a bare form. Endorsements — also called riders — tailor it to the investors, warehouse lenders, and regulators a given firm answers to. Knowing which ones a lender needs is part of structuring the program.
A few endorsements come up on nearly every mortgage banking placement. The most familiar are the GSE notification endorsements: Fannie Mae, Freddie Mac, and Ginnie Mae generally expect to be notified before a servicer's bond is cancelled or materially reduced, and an endorsement adds that notification undertaking to the bond. Loss-payee and additional-insured endorsements extend the bond's recognition to a warehouse lender or other secured party, so a financing partner's interest is named on the coverage. State regulators sometimes require a similar endorsement naming the supervising authority.
Other endorsements adjust the coverage itself rather than who is notified. A discovery-period or extended-reporting option preserves the ability to report a loss found after the bond expires. Endorsements can also add or refine an insuring agreement — for example, addressing audit expense, or aligning the Mortgagee's E&O section with a specific investor's requirements.
This is a plain-language overview, not a list of what any particular bond includes. The endorsements available, their exact wording, and their cost are set by the issuing market and confirmed during underwriting.
Built for the requirements your investors impose.
Agency-approved seller/servicers are required to carry fidelity bond and mortgage errors & omissions coverage, with minimum limits that scale with servicing portfolio size. The Mortgage Bankers Bond is structured to address these requirements — and confirming that a given bond and its limits satisfy each agency's current rules is part of the program review we perform.
Written for the full range of the mortgage business.
Retail & Wholesale Lenders
Mortgage bankers originating through retail and wholesale channels, including correspondent lenders.
Loan Servicers
Primary servicers carrying agency and investor portfolios, where E&O and fidelity limits scale with volume.
Sub-Servicers
Firms servicing loans on behalf of other institutions, with the liability that arrangement carries.
Warehouse-Funded Lenders
Lenders borrowing under warehouse lines, where the facility frequently requires the bond as a condition.
Agency-Approved Seller/Servicers
Fannie Mae, Freddie Mac, Ginnie Mae, and HUD-approved firms subject to mandated coverage.
Growing & Newly-Approved Firms
Lenders pursuing agency approval that need a bond program structured to qualify from day one.
A specialist desk — not a generalist agency.
We know the form
We place the Mortgage Bankers Bond and the SFAA Form 15 as a focused line of business, and we read the bond at the level of its insuring clauses and endorsements.
Direct market access
As a desk of Surety One, Inc., we work directly with the markets that write this class — so submissions reach a real underwriting decision.
Program, not just price
We structure limits, deductibles, and endorsements against your agency and warehouse requirements — and tell you where the bond ends and other coverage begins.
From inquiry to bound coverage.
Short Intake
Tell us a few key facts about your firm — two minutes, no application needed to start.
We Triage
Our underwriters review the risk and identify the market and program that fit.
Full Application
We send the application and walk you through the required attachments.
Quote & Bind
We negotiate terms with the market and place coverage that meets your requirements.
Begin with a two-minute intake.
Share a few details and our underwriting desk will tell you which market fits and exactly what your application will require. No commitment, no application needed to begin.
The Mortgage Bankers Bond, explained.
What is a Mortgage Bankers Bond?
A Mortgage Bankers Bond is a specialized fidelity and crime policy written for mortgage lenders and servicers. It typically combines three areas of protection in one bond: fidelity and crime coverage for employee dishonesty, forgery, and related loss; coverage for theft by directors, partners, attorneys, and loan closing agents; and a Mortgagee's Errors & Omissions section protecting the lender's security interest against errors such as lapsed hazard or flood insurance, unpaid real estate taxes, and recording failures. The domestic equivalent is the SFAA Financial Institution Bond Standard Form No. 15.
What is the difference between a Mortgage Bankers Bond and Form 15?
Form 15 is the Financial Institution Bond Standard Form No. 15 promulgated by the Surety & Fidelity Association of America for finance companies and mortgage lenders. The Mortgage Bankers Bond is the London-market manuscript bond written for the same class of business. Both deliver fidelity, crime, and Mortgagee's E&O protection; they differ in form structure, market, and available enhancements. As a specialist desk, we place either — whichever best fits your risk and program.
Does the bond satisfy Fannie Mae, Freddie Mac, and Ginnie Mae requirements?
Fannie Mae, Freddie Mac, Ginnie Mae, and HUD each require approved seller/servicers to maintain fidelity bond coverage and mortgage errors & omissions coverage, with minimum limits that scale with servicing portfolio size. The Mortgage Bankers Bond is structured to address these requirements, but the bond itself is not issued as a statutory or regulatory instrument — confirming that a given bond and its limits satisfy a specific agency's current rules is part of the underwriting and program review we perform.
What does the Mortgagee's E&O section cover?
The Mortgagee's Errors & Omissions section protects the lender's interest as a mortgagee. It typically responds to losses caused by an error or accidental omission — failing to obtain or maintain required hazard or flood insurance, failing to make required investor or agency notifications, failing to pay real estate taxes, or errors in recording security instruments. It is mortgagee's E&O — protecting the security interest in the collateral — and is distinct from professional liability coverage for negligent loan origination or borrower-facing conduct, which is placed separately.
What endorsements does a Mortgage Bankers Bond usually need?
Most mortgage banking placements rely on a few common endorsements. GSE notification endorsements add an undertaking to notify Fannie Mae, Freddie Mac, or Ginnie Mae before a bond is cancelled or materially reduced. Loss-payee and additional-insured endorsements extend the bond's recognition to a warehouse lender or other secured party. A discovery-period or extended-reporting option preserves the ability to report a loss found after the bond expires. Which endorsements a given bond needs depends on the lender's investors, warehouse facilities, and licensing — identifying them is part of the submission review.
What limit does a mortgage lender need, and what does the bond cost?
Minimum fidelity and mortgage E&O limits are driven by the agencies and investors a lender answers to, and they scale with servicing portfolio size — Fannie Mae, Freddie Mac, and Ginnie Mae each publish their own thresholds. Premium depends on limits, deductibles, origination and servicing volume, loss history, and internal controls. Because every program is different, there is no single published rate; a short intake lets the underwriting desk identify the limit your investors require and the market that fits.
Do warehouse lenders require a Mortgage Bankers Bond?
Frequently, yes. Warehouse lenders extend the lines of credit a mortgage banker draws on to fund loans, and the warehouse facility agreement commonly requires the borrower to maintain a fidelity bond — often naming the warehouse lender by endorsement as a loss payee or additional insured. A lender arranging or renewing a warehouse line should confirm the facility's specific bond and limit requirements early.
How does the application process work?
The application for this class is detailed — our questionnaire runs to roughly twelve pages and includes Title Company and Social Engineering Fraud supplements, along with required attachments such as audited financials, an organizational chart, and current declarations pages. You can start with a short intake so our underwriters can triage the risk and identify the market, or download the complete application questionnaire and prepare it in full. Either way, our desk walks you through what the carrier needs before coverage is bound.
Who do I contact?
Our underwriting desk can be reached at (800) 373-2804 or Underwriting@SuretyOne.com. You can also start a short intake or request a callback using the buttons throughout this page. This is a Mortgage Bankers Bond desk of Surety One, Inc.