Effective January 1, 2026, the Department of Savings and Mortgage Lending (SML) will require all residential mortgage loan servicers in Texas to file and maintain surety bonds electronically through the Nationwide Multistate Licensing System (NMLS). This new mandate follows the guidelines set out in 7 Texas Administrative Code § 58.107.
The requirement applies to all entities registered as residential mortgage loan servicers under Chapter 158 of the Texas Finance Code. These registrants must use the NMLS Electronic Surety Bond (ESB) system for filing their bonds. Paper surety bonds will no longer be accepted after this date; during the renewal period, those operating under paper bonds must convert to electronic surety bonds to renew their registration.
According to SML, “The adoption of electronic surety bonds enhances efficiency, improves recordkeeping, and aligns Texas with national standards already in place in many other states.”
More information about the process can be found on the NMLS Resource Center website.
For further questions or assistance with this transition, SML encourages registrants to contact them by email or visit their official website at sml.texas.gov.
