Effective January 1, 2026, the Department of Savings and Mortgage Lending (SML) will require all residential mortgage loan servicers in Texas to obtain and maintain surety bonds electronically through the Nationwide Multistate Licensing System (NMLS). This change is mandated by 7 Texas Administrative Code § 58.107.
The new requirement applies to all entities registered as residential mortgage loan servicers under Chapter 158 of the Texas Finance Code. According to SML, “A surety bond must be filed electronically via the NMLS Electronic Surety Bond (ESB) system.”
All registrants must have an electronic surety bond on file by January 1, 2026. During the renewal period, those operating under a paper surety bond must convert to an electronic format in order to renew their registration.
SML stated that this transition is intended to improve efficiency and recordkeeping while aligning Texas with national standards already adopted in other states. The agency explained, “The adoption of electronic surety bonds enhances efficiency, improves recordkeeping, and aligns Texas with national standards already in place in many other states.”
Further details about the process can be found on the NMLS Resource Center website.
For questions or assistance regarding the transition, SML encourages contacting them by email or visiting their official website at sml.texas.gov.
