Surety Bond News

Montana mortgage broker and lenders now have a new rule to follow in order to stay legal with the state. A new bill was enacted named HB 90 and requires mortgage servicers to acquire a $100,000 surety bond. HB 90 states that mortgage lenders and mortgage brokers must obtain a bond whether they’re a company or an individual. The new bill also includes a cancellation provision which requires a 30-day notification to the Division.

Individual mortgage loan originators in Georgia State no longer need to obtain a surety bond for themselves. A new law titled HB 239 gets rid of the requirement for individual mortgage loan originators which requires them to acquire a surety bond. In its place, the new law states that individual originators must be covered under a sponsoring mortgage broker or mortgage lender; so the individual bond is not necessary.

The State of Indiana presented new legislation relating to mortgage lenders. The new law is labeled SB 328 and states that first lien mortgage lenders and consumer lenders must abide by the licensing requirements set for mortgage loan originators and acquire a surety bond in a quantity that mirrors the dollar amount of mortgage dealings executed. The Department of Financial Institutions will promulgate the surety bond quantity through policy. SB 328 also alters the surety bond requirement for lenders who make small loans by terminating the present cap on the surety bond quantity; diminutive loans in Indiana are for $550 or less. The present legislation requires a $50,000 surety bond for individual locations where small loans will be executed. The surety bond quantity could not surpass $500,000 under the previous law. SB 328 states that the Department will establish the greatest surety bond quantity possible.

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.

The State of Indiana enacted a new bill relating to mortgage lenders. The new bill is labeled SB 328 and requires first lien mortgage lenders and consumer lenders to satisfy the terms of new federal standards regarding the licensing of mortgage loan originators. Should these lenders utilize a licensed mortgage loan originator, such an originator would be required to be covered by their employer’s surety bond. The surety bond would have to be 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 also allows the Director to implement rules to apply the surety bond requirement.