Increasing Bond Amount

[Redbull]

Hello,
I know a couple of mortgage brokers who are increasing their bond amounts in different states. I'm just curious as to who requires the bond increase - does the state require it, or does the individual mortgage broker decide to increase the amount if they are going to be doing more business?
Thanks!

[Admin]

The state (obligee) decide the bond amount. The states can vary on surety bond requirements. Some require one bond for the company to operate in the state. Other will require the initial bond and increases for each branch. A few (Maryland and New York come to mind) base the requirement on volume and branch offices.