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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.

Missouri Mortgage Originator Bond




MissouriThe state of Missouri has implemented a new bill concerning mortgage originators. The new bill is named HB 382 and requires mortgage originators to be licensed and to be covered by a surety bond required of mortgage loan brokers. HB 382 asks residential mortgage loan brokers to acquire a surety bond that covers all of the mortgage originators that are the broker’s staff or agents. The quantity of the surety bond must mirror the dollar amount of loans originated. The surety bond amount is also capped at $1 million, with a bare minimum of $50,000. The Director of the Division of Finance will establish the levels of bonding by regulation. The previous law required residential mortgage loan brokers to acquire a license bond of $20,000. The bill provides for direct actions on the surety bond from borrowers. The new bill also canceled the option of a surety bond that was allowed in place of yearly auditing of a mortgage broker’s financial records. A $100,000 surety bond or a letter of credit was required in the place of the audit.


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