Mortgage brokers, bankers, and servicers are all affected by a law update in the state of Arkansas. Named HB 1881, the new law updates the current surety bond requirements for mortgage bankers, brokers and servicers. The previous law required mortgage bankers and servicers to obtain a surety bond in the amount of $100,000; while mortgage brokers had to obtain a $50,000 surety bond. HB 1881 allows the Securities Commissioner to prescribe the quantity required through regulations. The surety bond amount will be calculated by the mortgage banker’s, broker’s or servicer’s loan activity in the preceding year and it must be less than $100,000. The surety bond also has to cover the loan officers that a banker, broker or servicer employs, assuring the loan officer’s truthful performance of their responsibilities and be for the state’s advantage for claims in opposition to the officer. HB 1881 also revoked provisions of previous law that authorized cash or other security in place of the surety bond so that only a surety bond will be acknowledged.
-
Arkansas Mortgage Broker Bond Update
February 18, 2010 by Eric WeisbrotDiscuss: Comments (0)
Category: Commercial Bonds, Mortgage Banker Bonds, Mortgage Broker Bonds, Surety News
Tags: AR, Arkansas, bond requirements, legislation, Mortgage Broker Bond Update, surety bond
-
D.C. Mortgage Broker\Lender Bond Amendment
January 3, 2010 by Eric WeisbrotMortgage 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.
Discuss: 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
-
Louisiana Legislature Study Reports Insufficient Bond Requirements
December 6, 2009 by Eric Weisbrot
In Louisiana, a new study resolution was introduced regarding farming. The new resolution, titled SCR 122, is a study resolution that the Legislature of Louisiana has implemented and requests the Louisiana Law Institute to study the security interest priorities/contract right issues for the lenders, farmers and grain elevators. SCR 122 provides that the existing indemnity requirements for grain dealers and cotton merchants are not sufficient to provide appropriate protection in the occurrence of insolvency. All of the dealers and merchants are required to indemnify grain and cotton producers. SCR 122 also notes that “current law requires only a $50,000 surety bond in case of insolvency” and that the “insolvency of a grain elevator can often result in losses in the millions of dollars for producers.” The resolution comments that there are multiple groups involved in such businesses where there have been considerable issues related to the items mentioned above. Discuss: Comments (0)
Category: Commercial Bonds, Mortgage Banker Bonds, Surety News
Tags: bond requirements, LA, legislation, Louisiana, surety bond
-
North Carolina Mortgage Servicers Bond
November 2, 2009 by Eric Weisbrot
HB 2463, enacted on 08/17/2008, is a new North Carolina state law. HB 2463 manages mortgage servicers and requires them to follow the same licensing, bond and qualification provisions as mortgage lenders. The existing law requires a surety bond of $150,000. Alternatives to the bond are cash or securities in the same amount; as well as is a financial statement representing a net worth of $250,000. Existing law already authorizes and gives precedence to direct customer claims. HB 2463 became active on January 1, 2009.Discuss: Comments (0)
Category: Commercial Bonds, Mortgage Banker Bonds, Mortgage Broker Bonds, Surety News
Tags: bond requirements, legislation, mortgage servicers, mortgage servicers bond, NC, North Carolina, surety bond
-
Connecticut Correspondent Lenders Bond
September 24, 2009 by Lisa Grimsley
Effective July 1, 2008, correspondent lenders in Connecticut now follow the same bond requirements as mortgage lenders and brokers, according to the HB 5577 enactment. The bond amount is also increased from $40,000.00 to $80,000.00. There are new regulatory requirements for mortgage brokers and lenders. The law specifies new permissible and prohibited actions for mortgage brokers and lenders. If there are any unpaid costs of an examination of a license, the bond is required to respond to it. The Banking Commissioner is no longer required to automatically suspend the license on the date the license bond is canceled unless it is renewed or replaced. If the licensee does not pay the costs after 30 days of an examination, the license will be suspended.Discuss: Comments (0)
Category: Commercial Bonds, Mortgage Banker Bonds, Mortgage Broker Bonds, Surety News
Tags: connecticut, correspondent lender, correspondent lender bond, ct
