Regulatory Alerts2026-03-06
Kansas Administrative Regulations 17-24-6: Mortgage Company Bond Requirements
The Kansas Office of the State Bank Commissioner promulgated regulation 17-24-6 to require all licensed mortgage companies to maintain a surety bond between $50,000 and $125,000, scaled by physical office presence and prior-year Kansas loan origination volume. This rule equalizes bonding standards for domestic and foreign lenders, explicitly limits the Commissioner’s authority to impose higher bonds at $1,000,000 for high-risk operations, and mandates annual compliance verification each January 1. Projected economic impacts indicate the standardized framework will reduce compliance burdens and generate net premium savings for most out-of-state mortgage companies while slightly increasing costs for Kansas-based firms.
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