TITLE: Kansas Updates Mortgage Company Surety Bond Requirements and Limits
BODY:
On November 25, 2025, the Kansas Office of the State Bank Commissioner updated Kansas Administrative Regulations (K.A.R.) 17-24-6 to establish standardized surety bond requirements for all mortgage companies operating in Kansas, regardless of location.
The regulation requires mortgage companies to maintain surety bonds as follows: companies maintaining a bona fide Kansas office must provide a $50,000 bond, or $75,000 if they originated more than $50 million in Kansas mortgage loans during the previous calendar year. Companies without a bona fide Kansas office must provide a $100,000 bond, or $125,000 if they originated more than $50 million in Kansas mortgage loans during the previous calendar year. The State Bank Commissioner may require higher bonds up to $1 million based on specific factors, including whether the applicant uses technology requiring additional regulatory oversight, has faced prior regulatory or disciplinary actions, or operates with elements of risk requiring enhanced oversight. The regulation establishes January 1 annually as the date by which all licensees must maintain minimum surety bond requirements.
The amendment removes preferential treatment previously afforded to Kansas-based mortgage companies and creates consistency across in-state and out-of-state operators. According to the economic impact statement, the regulation is expected to increase surety bond premiums for approximately 38 in-state mortgage companies by approximately $875 annually, while reducing premiums for approximately 492 out-of-state mortgage companies by up to $437.50 each. The Office of the State Bank Commissioner consulted with Rocket Mortgage, OneMain Financial, and the Mortgage Bankers Association, with no objections noted. The regulation became effective October 2, 2009, with amendments approved January 15, 2026.