Surety Bond News

Legislators in New York have implemented requirements concerning mortgage loan servicers working within the state. The New York Banking Department has re-adopted rules for mortgage loan servicers to apply a new law enacted under the bill SB 8143 (2008). The bill requires mortgage loan services to obtain a $250,000 surety bond from a surety company licensed in the state in order to operate legally.

Promoters of combat sport matches will be affected by a new bill in the state of Idaho. The Idaho State Athletic Commission has implemented rules to enact the bill, HB 32 (2009), which allows other types of security to be used in place of the surety bond currently required of boxing promoters, kickboxing, wrestling and mixed martial arts matches. Should these promoters choose to opt out of getting a surety bond, there will now be alternatives in place in order to operate legally.

Surety bonds are essential when it comes to the freight broker business. For anyone that wants to be a legitimate freight broker, a bond is needed because they guarantee the rules will be respected. One problem with freight broker bonds is the rather small bond amount and the high frequency of claims. Since such a small bond amount is required despite the high claim volume, various representatives think raising the bond amount is a good idea; but their plan seems to be overkill and could put many small companies out of business.
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Legislators in Louisiana State have set a new law concerning coordinated care networks. The Louisiana Department of Health and Hospitals implemented regulations for its Medicaid program regarding coordinated care networks; they are organized health care delivery systems which are meant to enhance access to care services. Any networks functioning under a “shared savings model” are required to obtain a surety bond to guarantee the management fee for the network. The Louisiana Department of Health and Hospitals will establish the required bond amount.

Real estate closing agents must abide by new legislation in the state of Iowa. The Iowa Banking Division has modified its regulations to enact SB 2348 (2010). SB 2348 requires real estate closing agents to obtain a $25,000 surety bond in order to be licensed with the state but the Superintendent of the Division of Banking has the ability to require a larger bond. When it comes to mortgage brokers and mortgage bankers, the new law also requires the bond amount to be calculated by the amount of residential mortgage loans serviced; opposed to the current law which calculates the bond amount by the amount of residential mortgage loans made, originated, arranged, brokered, processed, and underwritten.