Surety Bond News

Connecticut mortgage brokers, lenders and originators must abide by a revised bond amount requirement. The new bill is titled SB 1110 and modifies the current licensing laws for mortgage lenders, brokers and originators. Previous legislation required a minimum $40,000 surety bond. SB 1110 requires the bond amount to mirror the licensee’s loan origination volume. The new bill requires mortgage lenders and correspondent mortgage lenders to obtain a minimum $100,000 surety bond and mortgage brokers must acquire a minimum $50,000 bond.

Mortgage servicers in Montana State now must obtain surety bonds in order to operate legally. The new law is titled HB 90 and requires mortgage servicers to acquire a $100,000 bond. HB 90 also states that separate bonds are needed for mortgage lender, mortgage broker and mortgage servicer licenses.

The world of surety seems to be doing just fine amidst the down economy. There are still a lot of construction jobs available and many bonds to be written; but could the healthy appearance of the surety industry be somewhat of an illusion? (more…)

Perspective homeowners know understanding homeownership lingo can be an all-consuming job in itself. Buyers have to navigate through terms such as FHA, escrow and adjustable rate mortgages, on top of finding their dream home. While many choose to lead the effort on their own, some prefer to have professional guidance through a mortgage broker. However, some are hesitant to rely on an outside individual for such a critical financial investment. In the wake of several high-profile investment scandals, many are simply too scared to trust their finances in the hands of others. (more…)

Nevada mortgage broker surety requirements have been changed due to a new bill. The bill is labeled AB 77 and alters the bond amount required of mortgage brokers. The previous law stated that the bond amount was calculated by the number of branches that the broker had or its yearly loan volume. The set bond amount was $50,000 plus $25,000 for each branch, but was capped at $75,000; or the bond had to be $50,000 if the broker had less than $20 million in loan volume and $75,000 if the broker’s loan volume was over $20 million. AB 77 does away with the bond amount calculation using the number of branches. It’s now calculated by loan volume only. The new legislation also terminates the option to post alternative forms of security in place of a bond and changes the state bond form to require the signature of a Nevada Licensed Insurance Agent instead of a Nevada resident agent.