Alaska State mortgage brokers and mortgage lenders must cooperate with a new law which is referred to as SB 279. The new law modifies the present surety bond requirements for mortgage brokers and lenders. The previous legislation required a $25,000 surety bond while the new law, SB 279, requires a surety bond in a quantity that is established via policy. Also, the previous law only required the surety bond to stay active until the mortgage lender or broker’s license was retracted. The new legislation requires the surety bond to remain active for three years after the cancellation of the license.
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Alaska Mortgage Broker Bond
September 8, 2010 by Eric WeisbrotDiscuss: Comments (0)
Category: Commercial Bonds, Mortgage Broker Bonds, Surety News
Tags: AL, alaska, bond requirements, legislation, mortgage broker bond, surety bond
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Alaska Mortgage Broker Bond
July 14, 2010 by Eric WeisbrotSB 279 is a new bill that was enacted in Alaska State concerning both mortgage brokers and lenders. The new bill modifies the present surety bond requirements for mortgage brokers and mortgage lenders to fulfill the new federal standards for mortgage loan originators. The previous bill required a $25,000 surety bond. SB 279 requires a surety bond in a quantity which is established through regulations. The new legislation inserts a three-year tail to the surety bond in the statute. The previous law stated that the surety bond only had to remain active until the mortgage lender or broker’s license is withdrawn or canceled. The surety bond would have to be active for three years following the cancelation of the license. SB 279 also provides for a transition so that the required surety bond quantity will stay put at $25,000 until the policies for the bond prescribed in the new legislation are active. Discuss: Comments (0)
Category: Commercial Bonds, Mortgage Broker Bonds, Surety News
Tags: AK, alaska, bond requirements, legislation, mortgage broker bond, surety bond
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Hawaii Mortgage Loan Originator Bond
June 15, 2010 by Eric Weisbrot
SB 2603/HB 2278 is a new law that was enacted relating to mortgage loan originators in the State of Hawaii. The new law substitutes the present mortgage loan originator surety bond requirement which was enacted in 2009 with a recovery fund. The previous law required originators to be covered by a surety bond in a quantity calculated by the dollar amount of the loans originated and authorized originators to be covered by their employer’s surety bond. The Commissioner of Financial Institutions was authorized to promulgate regulations in order to apply the surety bond requirement, but no regulations were promulgated. SB 2603/HB 2278 requires licensees to pay into a fund that would be for any individual aggrieved by an action, representation, transaction or behavior of a licensed mortgage loan originator ensuing from a licensee’s deception, misrepresentation or fraud. These individuals can recover from the fund with a court order in a maximum quantity of $25,000 per transaction for damages suffered. Discuss: Comments (0)
Category: Commercial Bonds, Mortgage Broker Bonds, Surety News
Tags: bond requirements, Hawaii, HI, legislation, Mortgage Loan Originator Bond, surety bond
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Minnesota Mortgage Loan Originator Bond
June 14, 2010 by Eric Weisbrot
Mortgage loan originators are affected by a new law that was enacted in Minnesota State. The new law is named SB 2510 and requires mortgage loan originators to be licensed and covered by a surety bond. It is acceptable to either acquire a bond or be covered through their employer’s bond if they are the member of staff or exclusive agent of an individual subject to the surety bonding requirements. The surety bond must supply coverage for all mortgage loan originators and must be in a quantity that mirrors the dollar amount of loans originated. The Commissioner of Commerce will establish the surety bond quantity.SB 2510 alters the present license requirements for residential mortgage loan originators as well. The previous law required mortgage loan originators to be licensed and acquire a minimum surety bond of $50,000 or an irrevocable letter of credit. The originators also could have sustained a minimum net worth of $250,000 or be accepted as a mortgagee by the U.S. Department of Housing and Urban Development or the Federal National Mortgage Association. The alternative of attaining a letter of credit or meeting net worth requirements are terminated under the new legislation. The new law requires residential mortgage loan originators to acquire a $100,000 surety bond that covers all mortgage loan originators that are staff or independent agents of the licensee. Upon renewal, the surety bond must be in a quantity that emulates the licensee’s sum dollar amount of the closed residential mortgage loans originated in Minnesota. The surety bond quantities must be according to the following schedule:
Dollar Amount of Loans Bond Amount
$0 to $5 million $100,000
$5,000,000.01 to $10 million $125,000
$10,000,000.01 to $25 million $150,000
Over $25 million $200,000Discuss: Comments (0)
Category: Commercial Bonds, Mortgage Broker Bonds, Surety News
Tags: minnesota, MN, Mortgage Loan Originator Bond
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Indiana Mortgage Lender Bond
June 3, 2010 by Eric Weisbrot
SB 328 is a new bill that was enacted regarding financial institutions in the State of Indiana. The new bill modifies the legislation relating to numerous financial institutions and professionals. First lien mortgage lenders and consumer lenders must cooperate with the new federal standards pertaining to the licensing of mortgage loan originators and must acquire a surety bond in a quantity that mirrors the dollar amount of mortgage transactions originated according to the determination of the Director of the Department of Financial Institutions. SB 328 allows the Director to implement policy to apply the surety bond requirement. Discuss: Comments (0)
Category: Commercial Bonds, Mortgage Broker Bonds, Surety News
Tags: bond requirements, IN, Indiana, legislation, Mortgage Lender Bond, surety bond
