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.
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North Carolina Mortgage Servicers Bond
November 2, 2009 by Eric WeisbrotCategory: Commercial Bonds, Mortgage Banker Bonds, Mortgage Broker Bonds, Surety NewsTags: bond requirements, legislation, mortgage servicers, mortgage servicers bond, NC, North Carolina, surety bond | Comments (0)
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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.Category: Commercial Bonds, Mortgage Banker Bonds, Mortgage Broker Bonds, Surety NewsTags: connecticut, correspondent lender, correspondent lender bond, ct | Comments (0)
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South Dakota Mortgage Broker Bond Amendment
September 16, 2009 by Eric Weisbrot
Enacted on 03/13/2008, SB 157 allows a mortgage brokerage to acquire one bond that will fulfill the bond requirement for all individual applicants that the brokerage employs. Under existing South Dakota law, mortgage broker’s license applicants must post a $25,000 surety bond individually.Category: Commercial Bonds, Mortgage Broker Bonds, Surety NewsTags: bond requirements, legislation, mortgage broker bond, SD, South Dakota, surety bond | Comments (0)
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Texas Mortgage Broker License Bond
August 4, 2009 by Lisa Grimsley
On 06/19/2009, Texas has enacted HB 2774. This eliminates the $25,000 net worth and $50,000 license bond requirement for mortgage brokers. This law requires that the financial requirements for holding a mortgage loan officer or mortgage broker’s license must be met through participation in the mortgage broker recovery fund; under Texas law in section 156.01 of the financial code, this already exists. The new law amends the recovery fund provisions. This change limits payments out of the fund to 25,000 aggregate for all claims arising from the same transaction, and to $50,000 as to all claims against a licensee. From now on this will not allow recovery of attorneys’ fees and court costs. Also, payments from the recovery fund will be reduced by any recovery from the surety or insurer. The banking regulators can use these funds to cover any costs of safely managing old mortgage loan documents and any financial responsibilities of administering the fund.Category: Commercial Bonds, Mortgage Broker Bonds, Surety NewsTags: bond requirements, legislation, license & permit bond, license bond, mortgage broker, surety bond, texas, tx | Comments (0)
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Texas Loan Originator Bond
August 3, 2009 by Lisa GrimsleyAs of 06/19/2009, Texas enacted HB 2779 which applies to mortgage originators that are employees of licensed mortgage bankers. The mortgage originators employed by mortgage bankers are defined as those entities that accept applications or make residential mortgage loans and that are approved as: 1) a mortgage with direct endorsement underwriting authority from the U.S. Department of Housing and Urban Development; 2) a seller/servicer of the Federal National Mortgage Association for the Federal Home Loan Mortgage Corporation, or 3) an issuer for the Government National Mortgage Association Lenders. HB 2779 now requires mortgage originators to be licensed and to comply with Chapter 180 requirements of the Finance Code. This new section, Chapter 180, is new to the Code enacted under HB 10; which requires mortgage loan originators that are employed by mortgage bankers pay a fee into a recovery fund or post a surety bond. On April 1, 2010 this law will be active.Category: Commercial Bonds, Mortgage Broker Bonds, Surety NewsTags: bond requirements, legislation, loan originator, surety bond, texas, tx | Comments (0)
