California Financial Management Services Providers are required under Sections 58884, 58886 and 58887 of Title 17 of the California Code of Regulations to file a California Mortgage Financial Management Services Provider as a condition of licensure if the total of all individual budgets for participants served by the FMS during a state fiscal year is expected to be five hundred thousand dollars ($500,000) or more. The bond amount shall be equal to no less than 20 percent of the total of all individual budgets for participants served by the FMS.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The California Financial Management Services Provider Bond holds you accountable for your business decisions.
By possessing a California Financial Management Services Provider Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.