In Kansas, new legislation was written relating to mortgage brokers. The new law is labeled SB 240 and requires the banking commissioner to promulgate the surety bond quantity required of mortgage brokers, which must be no less than the existing $50,000 bond if the broker preserves an office in Kansas. The surety bond may not be less than $100,000 if there is not an office preserved in the State. The present law authorizes termination of the surety bond with 30 days warning, and the new law now identifies that such cancelation would not influence the surety’s liability for infringements of the Kansas Mortgage Business Act that arose before the effective date of termination. Additionally, SB 240 states that the surety bond principal and the surety “shall be and remain liable for a time frame of two years from the date of any action or inaction of principal that gives rise to a claim under the bond.”

Kentucky State has implemented a new law concerning mortgage brokers and lenders. The new law which is titled HB 106 modifies the surety bond requirements for mortgage brokers and lenders, and subjects mortgage loan originators to registration and bonding in order to employ the S.A.F.E. Mortgage Licensing Act. The present law requires lenders to acquire a surety bond that is at least $250,000 while requiring brokers to acquire a surety bond of at least $50,000. Additionally, HB 106 requires mortgage lenders, brokers and originators to attain or to be covered by a surety bond. The bond quantities from the existing law were not altered. The new law provides for termination of the surety bond with 30 days notification, which the previous law did not identify, and also cancels the utilization of alternative types of security in place of surety bonds. HB 106 also requires the surety bond to be obtainable for the recovery of restitution. Present legislation already states that the surety bond has to be accessible for expenses, penalties and fees.

Both mortgage brokers and lenders within the state of Idaho must follow new legislation. Named HB 169, the new law was introduced on 2/18/2009 and abolishes the existing surety bond requirements for mortgage brokers and mortgage lenders. The previous law called for a surety bond in the quantity of $25,000 in addition to $10,000 for each branch. Under HB 169, the State now had a mortgage recovery fund as an alternative to a surety bond. HB 169 became active July 1st, 2009.