NMLS Resource Center



HYPERLINK "" \l "ctl00_PlaceHolderTitleBreadcrumb_breadcrumb_SkipLink" NMLS Resource Center??Surety Industry?Purpose of Electronic Surety Bond TrackingNMLS TrainingsMany 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,?the?Secure 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.See?About NMLS?for 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 IINMLS 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, 20162:30 – 4:00 p.m. ETClick 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 – RecordingA 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 CompaniesPhase 1 for Surety ProducersRelated ResourcesNMLS Account Creation Work Flow DiagramA visual aid highlighting the account creation process with step-by-step details and interactive links to applicable Quick Guides.NMLS Association Process DiagramA visual aid highlighting the association process between a surety company and a surety bond producer with interactive link to applicable Quick Guides.Terms and DefinitionsProcess OverviewSRR 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 begin September 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.2484755127000053765452413000854900523304500State AdoptionCurrently, 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.109410514605000Commonly Asked QuestionsQ: 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) SampleQ: 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 the?Surety Company User Type and Roles Quick Guide?for additional information related to surety company entities. See the?Surety Bond Producer User Types and Roles Quick Guide?for 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 ProcessSurety Company Account Creation Process Surety Entity Account ManagementAssociation Creation Process Licensee Grant Authority to Surety Entity ProcessSurety Bond Creation Process Surety Company Bond Execution ProcessSurety Bond Producer Bond Execution Process Surety Bond ManagementSurety Bond Rider Creation Process Broker of Record Change ProcessSurety Company Account Request and State Authorizations FormSurety 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 OverviewSurety Bond Producer ResourcesFor 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 company processes, see the Surety Company page.Phase IDownload the Surety Bond Producer Account Request and State Authorizations Form?to 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 page to access the Phase I training session recording. Phase IIOn 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 IIWednesday, August 24, 20162:30 – 4:00 p.m. ETClick 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 GuidesNMLS Account Creation Work Flow DiagramA visual aid highlighting the account creation process with step-by-step details and interactive links to applicable Quick Guides.NMLS Association Process DiagramA 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 GuideA detailed guide for the surety bond producer account creation process.Surety Bond Producer Account Request and State Authorizations FormA 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 GuideHow to update your record in NMLS.Accepting Associations – Surety Bond Producer Quick GuideHow 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.?What do I need to do to get started?Step 1: Request a Surety Bond Producer account in NMLSReview the?Surety Bond Producer Account Creation Quick Guide and prepare the File plete 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.Step 2: Account Set UpCreate Organization Users (OU) and designate representatives for the surety bonding process. Use the?Surety Entity Account Management Quick Guide?for step by step instructions.Step 3: Contact Surety CompanyNotify all relevant surety companies that they will need to create accounts in NMLS as well, in order to participate in NMLS ESB. Step 4: Review and Accept Associations with Surety Companies380047554292500Associations 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 OverviewSurety Company ResourcesFor 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 IDownload the Surety Company Account Request and State Authorizations Form?to 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 page to access the Phase I training session recording. Phase IIOn 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 IIWednesday, August 24, 20162:30 – 4:00 p.m. ETClick 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 GuidesNMLS Account Creation Work Flow DiagramA visual aid highlighting the account creation process with step-by-step details and interactive links to applicable Quick Guides.NMLS Association Process DiagramA 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 GuideA 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 GuideHow to update your record in NMLS.Managing Associations – Surety Company Quick GuideHow to create associations within NMLS from a surety company’s perspective.Surety Company Association Upload XML SpecificationNMLS 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.What do I need to do to get started?Step 1: Request a Surety Company account in NMLSComplete the limited account request by click the Surety Company Account Request button below. You will be able to indicate if you are a Holding 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.Step 2: Full Account Set UpReview the?Surety 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.Step 3: Contact Surety Bond ProducersNotify all relevant surety bond producers that they will need to create accounts in NMLS as well, in order to participate in NMLS ESB. Step 4: Create Associations with Surety Bond Producers393509542926000Create 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. ? ................
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