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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.

On April 10, 2026, the Kansas Office of the State Bank Commissioner (OSBC) proposed permanent amendments to Kansas Administrative Regulation 17-24-6, which governs surety bond requirements for mortgage company licensees. The changes eliminate all tiered bonding based on geographic location (in‑state vs. out‑of‑state) and prior‑year loan volume, replacing them with a uniform $100,000 minimum bond for every mortgage company. The Bank Commissioner retains discretionary authority to increase the bond up to 1m under specific risk‑based criteria. These amendments align Kansas rules with K.A.R. 75‑6‑31 (supervised lenders under the Uniform Consumer Credit Code) and are expected to produce net economic savings for the industry overall. Establishes a uniform $100,000 minimum surety bond for all mortgage companies: Every applicant and licensee must maintain a surety bond of at least $100,000, regardless of whether the company maintains a physical office in Kansas or operates from out‑of‑state. Licensees must have at least $100,000 in surety bond coverage in place by January 1 annually, providing a clear compliance deadline. Removes the automatic bond increase tied to loan volume: No higher bond amount is automatically triggered by originating more than 50m in Kansas mortgage loans during the previous calendar year. Eliminates the lower bond amounts previously available to in‑state mortgage companies: The preferential $50,000 and $75,000 bond tiers for Kansas‑based licensees are removed; all companies now face the same $100,000 minimum. Authorizes the Commissioner to require a bond up to 1m under special circumstances: The Bank Commissioner may increase the bond requirement above $100,000, up to 1m, based on three specific factors: Use of technology or methods that may require additional regulatory oversight. Prior regulatory or disciplinary actions by any state or federal regulatory body. Business structure or activities that pose elevated risk requiring additional oversight. Use of technology or methods that may require additional regulatory oversight. Prior regulatory or disciplinary actions by any state or federal regulatory body. Business structure or activities that pose elevated risk requiring additional oversight. The changes are scheduled for a public hearing on June 8, 2026, with a 60-day public comment period beginning April 2, 2026.

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Kansas Updates Mortgage Company Surety Bond Requirements and Limits

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Kansas Office of the State Bank Commissioner Proposes Amendments to Surety Bond Requirements for Mortgage Companies