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Legislative updates and editorial columns from the surety experts at JW Surety Bonds; the largest surety bond company in the U.S.

District of Columbia Mortgage Broker Bond




District of ColumbiaA new bill was enacted in Washington, D.C. relating to mortgage brokers, lenders and originators. The new bill, which is titled Bill 133, has developed into law as it passed the Congressional review time without any action from Congress. The bill is indistinguishable from the emergency act that was enacted close to the conclusion of 2008 for mortgage brokers, lenders and originators, permanently implementing the Mortgage Lender and Broker Emergency Amendment Act of 2008; it applied a net worth requirement to mortgage brokers as well as the license bond requirement under present law. The Emergency Amendment Act also allows the broker to pay into a recovery fund as the Commissioner of the Department of Insurance, Securities and Banking precribes in place of meeting the net worth and bonding requirements. The SFAA effectively had Bill 133 altered to bound the surety’s liability to the penal sum of the surety bond despite of the amount of years the surety bond stays in effect, the amount of premiums paid, the amount of renewals of the license, or the amount of claims filed. Bill 133 also authorizes direct actions on the surety bond. The new bill became active after receiving approval from Congress on July 18th, 2009.


1 Comment »

  1. Surety Bond Blog: District of Columbia Mortgage Broker Bond http://www.jwsuretybonds.com/blog/district-of-columbia-mortgage-broker-bond

    Comment by JW_Surety_Bonds (JW Surety Bonds) — February 8, 2010 @ 7:50 pm

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