Surety Bond News

Florida State presented new legislation relating to consumer debt collection agencies. The new law is titled SB 2086 and requires consumer debt collection agencies to acquire a surety bond in relation to the present registration requirements in a quantity established by regulations. The surety bond can be no less than $50,000 but no more than $1 million and the policies will calculate the amount required by the agency’s business volume. The surety bond must be in favor of the State for the advantage of consumers harmed by the agency’s disobedience of the legislation. The surety’s aggregate liability would be restricted to the surety bond’s penal sum.

SB 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The previous law stated that the surety bond only had to remain active until the mortgage lender or broker’s license is withdrawn or canceled.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.

Mortgage loan originators must abide by a new law in South Carolina State. The new law is named HB 3790 and asks mortgage loan originators to be covered by a surety bond. HB 3790 requires that the surety bond covering the originator must be in a quantity calculated by the originator’s loan volume. According to the law implemented in 2009, a mortgage lender can be asked to acquire a surety bond in a quantity anywhere from $50,000 to $150,000 while a mortgage broker can be required to attain a surety bond ranging from $25,000 to $55,000.

The State of Georgia enacted a new law concerning real estate appraisal management companies. The new law, which is referred to as HB 1050, requires real estate appraisal management companies to acquire a surety bond or alternative security in relation to registration in order to guarantee compliance with the applicable legislation. The law would authorize direct actions on the surety bond and lead the Georgia Real Estate Appraiser Board to implement regulations regarding the other criteria for the surety bond.

Proceedings of public official surety bonds arrange a variety of contacts with officials. They may volunteer to assist with political campaigns or call on public officials in their offices. The producers are required to speak to sureties well before elections. Sureties have the option to choose not to write public official bonds in a specific region if their experience has been unsatisfactory. Should the surety write a public official bond, a producer can visit with surety staff to achieve insight into the idiosyncrasies of this business in states where the bonds are necessary.

Producers who fulfill their customers’ bonding and insurance requests benefit from potent word-of-mouth advertising. The producers can tap joint friendships to achieve the attention of candidates for office or public officials and can solicit surety bonds directly from these officials. All producers serve themselves and their potential principals by proposing services in September once primary elections have concluded and the candidates are identified. The candidates gain by making early bond commitments because they can avoid additional bond solicitations.

A number of government entities acquire qualifying bonds directly from sureties and forward the commission savings to the public officials. In the majority of cases, procuring the surety bond and compensation for its cost are statutory privileges of the officeholder.