Connecticut Mortgage Broker, Lender and Originator Bond Update

Connecticut mortgage brokers, lenders and originators must abide by a revised bond amount requirement. The new bill is titled SB 1110 and modifies the current licensing laws for mortgage lenders, brokers and originators. Previous legislation required a minimum $40,000 surety bond. SB 1110 requires the bond amount to mirror the licensee’s loan origination volume. The new bill requires mortgage lenders and correspondent mortgage lenders to obtain a minimum $100,000 surety bond and mortgage brokers must acquire a minimum $50,000 bond.