Mortgage brokers and lenders must recognize a new act in the District of Columbia. The new act which is named B 1020 is the Mortgage Lender and Broker Emergency Amendment Act of 2008. The new law requires a net worth requirement on mortgage brokers while inducing the license bond requirement under present law. B 1020 also authorizes the broker to pay into a recovery fund as the Commissioner of the Department of Insurance, Securities and Banking imposes in lieu of meeting the net worth and bonding requirements. The current law bases the bond amount on the loan volume of the broker with a minimum amount of $12,500 and a maximum amount of $50,000. The law was introduced behind schedule in the session and was enacted after 11 hours. The bill adds a new federal law enacted under H.R. 3221 (2008), which asks the Secretary of Housing and Urban Development to institute licensing and bonding requirement standards for all mortgage loan originators and brokers. While under the federal structure, all state licensing laws must contain a surety bond or a minimum net worth requirement. The federal law requires the surety bond amounts or the net worth levels to be based on the volume of loans. H.R. 3221 also permits the utilization of recovery funds in place of bonding or a minimum net worth. All states have 24 months to apply the federal standards, or the secretary’s federal program will apply. The District of Columbia has chosen to ask for both a surety bond and a net worth standard, and also authorizes for a recovery fund payment. B 1020 also revoked the present requirements for the bond amount. The Commissioner of the Department of Insurance, Securities, and Banking will establish all requirements for the surety bond under the new law.
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D.C. Mortgage Broker\Lender Bond Amendment
January 3, 2010 by Eric WeisbrotDiscuss: Comments (1)
Category: Commercial Bonds, Mortgage Banker Bonds, Mortgage Broker Bonds, Surety News
Tags: D.C., District of Columbia, mortgage banker bond, mortgage broker bond, Mortgage Lender Bond
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Florida Travel Agent Bond Requirement Increased
January 2, 2010 by Eric Weisbrot
Travel agents have a new law to abide by in the state of Florida named SB 1310. The new law alters the amount of the surety bond required from travel agents based on whether the agent books travel from Florida to a terrorist state or if the travel agent also sells vacation certificates. Travel agents who certify annually that they do not book travel to terrorist states are required to post a $25,000 bond; a $50,000 bond is required if they also sell vacation certificates. Any agents that certify that they organize travel to terrorist states but have no other business or commercial relationships with said states must acquire a $100,000 surety bond or a $150,000 surety bond if they also sell vacation certificates. The travel agents that certify that they book travel to terrorist states and have other business or commercial relationships with said states must acquire a $250,000 surety bond or a $300,000 surety bond if they also sell vacation certificates. Discuss: Comments (0)
Category: Commercial Bonds, Surety News
Tags: bond requirements, FL, Florida, legislation, surety bond, travel agent bond
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Florida Public Adjusters Bond
January 1, 2010 by Eric WeisbrotA new law concerning public adjusters was added to Florida state law on June, 23rd, 2008. The new law, which is labeled SB 2012, requires public adjuster apprentices to be licensed and obtain a surety bond of $50,000, issued by a state licensed surety company. The surety bond is conditioned for the trustworthy performance of their duties as an apprentice. SB 2012 requires the surety bond to be sustained for one year including the license period. The Department of Financial Services is solely allowed to make claims on the surety bond if the apprentice is found guilty of fraudulent or unfair practices regarding their business. The aggregate liability of the surety is restricted to the penal sum of the bond. The surety companies may terminate the bond with 30 days notice to both the apprentice and the Department of Financial Services. Discuss: Comments (1)
Category: Commercial Bonds, Surety News
Tags: bond requirements, FL, Florida, legislation, Public Adjusters Bond, surety bond
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Florida Money Transmitter Bond Amendment
December 31, 2009 by Eric WeisbrotIn Florida, a new law was enacted relating to money services businesses titled SB 2158. The new law raises the required license bond requirement amount for money transmitters and would require licensure as oppose to the present registration requirements. The prior law had the Financial Services Commission establish the amount required which could be up to $250,000. Under particular circumstances, the Financial Services Commission was able to boost the required amount up to $500,000 in extraordinary cases. SB 2158 states that the surety bond must be at least $50,000 and it permits the commission to amplify it up to $2 million. The SFAA backed this increase, but informed on the limitations it could produce in availability. Discuss: Comments (1)
Category: Commercial Bonds, Money Transmitter Bonds, Surety News
Tags: bond requirements, FL, Florida, legislation, money transmitter bond, surety bond
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Florida Health Choices Performance Bonds
December 29, 2009 by Eric WeisbrotIntroduced on March 6th, 2008, SB 2534 is a new law regarding a health insurance program in the state of Florida. SB 2534 creates the Florida Health Choices, Inc. for a statewide reasonably priced health insurance program. The new law also allows Florida Health Choices, Inc. to ask for performance bonds for its vendor contracts. SB 2534 was enacted and effective on 05/21/2008. Discuss: Comments (1)
Category: Commercial Bonds, Contract Bonds, Performance Bonds, Surety News
Tags: bond requirements, FL, Florida, Florida Health Choices, legislation, Performance Bonds, surety bond
