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.
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Connecticut Correspondent Lenders Bond
September 24, 2009 by Lisa GrimsleyCategory: Commercial Bonds, Mortgage Banker Bonds, Mortgage Broker Bonds, Surety NewsTags: connecticut, correspondent lender, correspondent lender bond, ct | Comments (0)
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Connecticut Professional Employer Organization (PEO) Bond
September 9, 2009 by Lisa GrimsleyThe new Connecticut amendment HB 5113, effective January 1, 2009, says that PEO’s (Professional Employer Organizations) need a working capital of at least $150,000 or they need to provide a surety bond, a letter of credit, or securities with a market value of $150,000. The surety bond is to ensure that the PEO will pay the taxes, wages, benefits, or entitlements if the PEO does not pay on time. If positive working capital is not shown on the PEO’s financial statements, then the bond must be for $100,000 plus an amount sufficient to cover the deficit of the working capital. The law also states that a covered employee is not an employee of the PEO for purposes of general liability insurance, surety bonds, fidelity bonds, employer’s liability, or employer’s liability insurance. Other states have used these provisions in the past few sessions as well.Category: Commercial Bonds, Surety NewsTags: bond requirements, connecticut, ct, legislation, peo bond, professional employer organization bond, surety bond | Comments (0)
