Alabama Mortgage Loan Originators Bond

Loan originators are affected by a new law written in Alabama. The new law, SB 249 requires mortgage loan originators to be licensed and to obtain a surety bond. SB 249 allows originators that are employees or the exclusive agent of an individual subject to the Alabama Consumer Credit Act (SB 234) or the Mortgage Brokers Licensing Act (SB 232) to utilize that individuals or entity’s surety bond to meet the requirement of the new law. The surety bond must supply coverage for every originator in an amount equal to the dollar amount of loans originated. SB 249 became active on June 1, 2009; though the licensing requirements will not be active until June 1, 2010.