Illinois Mortgage Loan Originator Bond

IllinoisHB 4011 is a new bill that was introduced in the state of Illinois relating to mortgage loan originators. The new bill requires mortgage loan originators to be covered under a surety bond in a quantity based on the loans originated. Any licensees that are a member of staff or exclusive agent of an individual subject to the present surety bond requirements for mortgage broker/lenders could utilize the employer’s bond to satisfy this requirement; this is only if the surety bond supplies coverage for the originator and is based on the employer’s loan originations. HB 4011 provides for the promulgation of regulation regarding the surety bond obligation. The present Illinois law asks mortgage broker and lenders to attain a $20,000 license bond and acquire a $100,000 fidelity bond. The new bill did not modify these amounts. HB 4011 became active upon enactment.