Nevada Mortgage Broker Bond

NevadaAB 486 is a new law that was introduced in Nevada concerning mortgage brokers. The new law implements a new license bond requirement for mortgage brokers within the state. AB 486 requires a $50,000 surety bond for the principal office and $25,000 bond per branch office. The surety bond quantity is capped at $75,000. The surety bond must be from a corporate surety that the Commissioner of Mortgage Lending finds satisfactory. The surety bond is conditioned on cooperation with the new law and on the imbursement for losses ensuing from a violation. A surety bond form is enclosed in the new law. Surety companies have the ability to terminate the bond with 60 days notification to the Commissioner of Mortgage Lending. AB 486 also authorizes direct actions on the surety bond. As a substitute to the surety bond, the law authorizes mortgage brokers to make a deposit in a bank or trust company allowed to do business in the State in a quantity equivalent to the surety bond required. The deposits can be in the form of the obligations of a state financial institution, obligations of the United States, or obligations of state and local governments and administrations.