July 30, 2009 by Lisa Grimsley
As of 6/19/2009, the state of Texas enacted HB 10. The enactment requires Texas mortgage originators to be fully licensed. In addition the originator must file a surety bond or pay towards a recovery fund. The law applies to all mortgage originators throughout Texas. Texas bank regulators are in charge setting the rules for the surety bond requirements and handling the recovery fund. HB 10 is unlike other surety bond requirements as it includes the sale of motor vehicles listed as a primary residence. In addition, it includes those involved in negotiating, making, or transacting property tax loans for a primary residence. HB 10 also includes creditors registered to originate residential mortgage loans.
Due to the current economic climate, many bonding companies that use to freely write mortgage originators have tightened their underwriting guidelines. Some sureties have stopped writing them altogether. This hardening mortgage surety bond market makes a good surety bond agent worth his or her weight in gold. After all, you cannot operate if you cannot meet the state requirements.
Fortunately, our agency is always working on unique bulk programs to ensure you get your state licensing requirements taken care of quickly so you can focus on more important things, namely, your business. Our system even offers free online bond approvals.
