You want to do business in Maryland. Whether you are a mortgage lender, a home improvement contractor, a money transmitter, or a professional solicitor, one question comes up: do you need a surety bond? The answer is yes for many professions—and the amounts vary dramatically. Mortgage lenders need bonds from $50,000 to $750,000 based on loan volume. Home improvement contractors need $20,000. Money transmitters need up to $2,000,000. And in 2026, new bills are moving through the Maryland General Assembly that could add bonds for ticket resellers and increase public official bonds. This guide covers everything you need to know about Maryland surety bonds—the requirements, the costs, the statutes, and exactly how to get bonded.
What Is a Maryland Surety Bond?
A surety bond is a three-party agreement that guarantees a business will comply with state laws and fulfill its obligations to customers and the state. If the business fails to perform—through fraud, code violations, or non-payment—the bond provides financial compensation to the harmed party .
The three parties are:
- Principal: The business or individual who needs the bond
- Obligee: The Maryland state agency requiring the bond (e.g., Office of Financial Regulation, Home Improvement Commission, Motor Vehicle Administration)
- Surety: The company that issues the bond and backs the guarantee
If a claim is filed against the bond and found valid, the surety pays the claimant up to the bond amount. The business must then reimburse the surety in full .
Maryland Mortgage Lender Bond
Under Maryland Code Title 11, mortgage lenders, brokers, and servicers must obtain a surety bond from the Office of Financial Regulation . The bond ensures that a person impacted by a mortgage lender’s violation of established rules is fairly compensated .
| Loan Volume | Bond Amount | Premium (Credit 700+) |
|---|---|---|
| $5 million or less | $50,000 | $500 – $1,500 |
| $5M – $25 million | $100,000 | $1,000 – $3,000 |
| $25M – $100 million | $250,000 | $2,500 – $7,500 |
| $100M – $250 million | $500,000 | $5,000 – $15,000 |
| Over $250 million | $750,000 | $7,500 – $22,000 |
Premium rates by credit score :
| Bond Amount | Credit 700+ | Credit 600-699 | Credit 599 or below |
|---|---|---|---|
| $50,000 | $500 – $1,500 | $1,500 – $2,500 | $2,500 – $5,000 |
| $100,000 | $1,000 – $3,000 | $3,000 – $5,000 | $5,000 – $10,000 |
| $250,000 | $2,500 – $7,500 | $7,500 – $12,500 | $12,500 – $25,000 |
| $500,000 | $5,000 – $15,000 | $15,000 – $25,000 | $25,000 – $50,000 |
| $750,000 | $7,500 – $22,000 | $15,000 – $25,000 | $25,000 – $50,000 |
Definition of mortgage lender: Any person who acts as a mortgage broker, makes mortgage loans, or serves as a mortgage servicer .
Maryland Home Improvement Contractor Bond
Home builders and sellers of new homes in Maryland must file surety bonds with the Consumer Protection Division of the Attorney General’s Office .
| Requirement | Details |
|---|---|
| Bond amount | $20,000 or $100,000 (varies) |
| Bond term | 2 years |
| Regulating body | Maryland Home Improvement Commission (MHIC) |
| Filing location | 200 St. Paul Place, 16th Floor, Baltimore, MD 21202 |
- Use the corporate surety bond form provided by the Unit, or submit other forms for prior approval
- File with the Unit at the Baltimore address above
- File a certification of compliance signed by the president or vice president (if a corporation) or general partner
- File with initial registration and with each renewal
- Notify the Unit within 10 days of any change to bond amount or compliance method
Maryland Money Transmitter Bond
Money transmitters in Maryland—including payment processors, currency exchange services, and companies handling digital fund transfers—must obtain a surety bond from the Office of the Commissioner of Financial Regulation .
| Requirement | Details |
|---|---|
| Bond amount | $150,000 to $2,000,000 (based on transaction volume) |
| Premium rate | 1% – 5% of bond amount |
| Premium example | $1,500 – $7,500 annually for a $150,000 bond |
The Commissioner determines the bond amount based on the volume of money transmission business, with higher amounts required for larger transaction volumes .
Other Maryland Surety Bonds
Proposed 2026 Maryland Bond Legislation
The Maryland General Assembly is currently considering two bills that would affect surety bond requirements :
Maryland Small Business Surety Bond Guaranty Program
Maryland offers a Small Business Surety Bond Guaranty Program through the Department of Commerce .
Requirements for guaranty approval :
- Bond must be approved by the Authority before issuance
- Work under contract cannot have begun without Authority’s consent
- Authority considers economic impact, including number of new jobs created
- Principal may be required to obtain hazard, casualty, liability, and other insurance
How Much Do Maryland Surety Bonds Cost?
The cost of a surety bond is the premium you pay to the surety company—a small percentage of the bond amount. Most applicants with good credit pay between 1% and 5% of the bond amount .
| Bond Type | Bond Amount | Starting Premium (Good Credit) |
|---|---|---|
| Mortgage lender (small volume) | $50,000 | $500 – $1,500/year |
| Money transmitter | $150,000+ | $1,500 – $7,500/year |
| Home improvement contractor | $20,000 | $200 – $600/year |
| Title service agent | $50,000 | $500 – $1,500/year |
| Fingerprinting provider | $10,000 | $100 – $300/year |
| Insurance adviser | $1,000 | $100/year |
| Ticket reseller (proposed) | $10,000 | $100 – $300/year |
Factors affecting your premium :
- Personal credit score (primary factor)
- Business financial history and statements
- Years in business and industry experience
- Transaction volume (for mortgage lenders and money transmitters)
- Bond amount required
How to Get a Maryland Surety Bond
The process follows four simple steps, and specialists like Swiftbonds have placed these bonds for Maryland businesses, working with A.M. Best A-rated sureties. Here is how it works:
- Apply: Complete a surety bond application with your business information, credit details, and the specific bond type and amount required by your Maryland agency.
- Quote: Within hours, the surety returns a premium quote based on your credit profile and the required bond amount.
- Pay: You pay the premium via credit card, ACH, or wire transfer.
- File: The surety issues the bond, and you file it with the relevant Maryland agency as required. For home improvement contractors, file with the Consumer Protection Division at 200 St. Paul Place, 16th Floor, Baltimore, MD 21202 .
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Filing Requirements for Maryland Bonds
Home improvement contractor bonds :
- Must use approved bond form or submit alternative for approval
- File certification of compliance signed by corporate officer or partner
- File with initial registration and each renewal
- Notify Unit within 10 days of any change
Credit services business bonds :
- Required under Maryland Code, Commercial Law, § 14-1908
- Must comply with Financial Institutions Article Title 11, Subtitle 3
- Obtain business license application from the State of Maryland
- Apply for surety bond
- Send license application and signed bond to the State of Maryland
Frequently Asked Questions
Q: How much is a mortgage lender bond in Maryland?
Bond amounts range from $50,000 to $750,000 based on annual loan volume. Premiums for applicants with good credit start at $500-$1,500 for a $50,000 bond .
Q: Do home improvement contractors need a bond in Maryland?
Yes. Home builders and sellers of new homes must file surety bonds with the Consumer Protection Division. The bond amount is $20,000 or $100,000 depending on the license type .
Q: What is the bond amount for a money transmitter in Maryland?
The bond amount ranges from $150,000 to $2,000,000, determined by the Commissioner based on transaction volume .
Q: Is a bond required for credit services businesses in Maryland?
Yes. Under Maryland Code § 14-1908, credit services businesses must obtain a surety bond pursuant to Title 11, Subtitle 3 of the Financial Institutions Article .
Q: What is the Maryland Small Business Surety Bond Guaranty Program?
A state program that guarantees up to 90% of losses for bonds up to $1,000,000, helping small businesses obtain bonding .
Q: Can I get a surety bond with bad credit in Maryland?
Yes. Many sureties offer programs for applicants with credit challenges, though premiums will be higher—typically 5-15% instead of 1-3% .
Q: What happens if a claim is filed against my bond?
The surety investigates. If valid, the surety pays the claimant up to the bond amount. You must then reimburse the surety in full .
Q: Where do I file my Maryland surety bond?
Home improvement contractor bonds are filed with the Consumer Protection Division in Baltimore . Mortgage lender and money transmitter bonds are filed with the Office of Financial Regulation. Check with your specific licensing agency.
5 Interesting Things About Maryland Surety Bonds Not in the Top 10 Sites
- Maryland has been practicing suretyship since its first settlement. As one of the original thirteen colonies, Maryland’s legal framework is based on English common law, and suretyship has been practiced in Maryland since its earliest days .
- The Small Business Surety Bond Guaranty Program can guarantee up to 90% of losses. Under COMAR 24.05.09.05, the Maryland Department of Commerce may guaranty up to 90 percent of all loss, cost, and reasonable expenses incurred by a surety for bonds up to $1,000,000 .
- Home builders must notify the state within 10 days of any bond change.Maryland regulations require home builders and sellers to provide written notification to the Consumer Protection Division within 10 days of any change to their bond amount or compliance method .
- The Authority may require key person life insurance for guaranteed bonds.Under the Small Business Surety Bond Program, the Authority may require that the principal’s owners and managers obtain and assign key person life insurance to the surety and the Authority in an amount not exceeding the guaranty .
- 2026 legislation could add a $10,000 bond for ticket resellers. HB 77, currently in committee, would require event ticket resellers to obtain a surety bond of at least $10,000 covering lost funds and travel expenses if tickets are not delivered .
Conclusion
Maryland requires surety bonds for many professions, including mortgage lenders ($50,000 to $750,000 based on loan volume), home improvement contractors ($20,000 to $100,000), money transmitters ($150,000 to $2,000,000), title service agents ($50,000), fingerprinting providers ($10,000), and credit services businesses .
The cost of a Maryland surety bond is a small percentage of the bond amount—typically 1-5% for applicants with good credit. A $50,000 mortgage lender bond might cost $500-$1,500 per year, while a $20,000 home improvement contractor bond might cost $200-$600 per year .
Maryland also offers a Small Business Surety Bond Guaranty Program through the Department of Commerce, which can guarantee up to 90% of losses for bonds up to $1,000,000, helping small businesses obtain bonding .
Before applying for any Maryland surety bond, confirm the specific requirement with the relevant agency: the Office of Financial Regulation for mortgage lenders and money transmitters, the Consumer Protection Division for home improvement contractors, or the Motor Vehicle Administration for title service agents. The bond is not optional for most licensed professions—it is a condition of doing business legally in Maryland.