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Legislative updates and editorial columns from the surety experts at JW Surety Bonds; the largest surety bond company in the U.S.

Vermont Mortgage Loan Originator Bond




VermontVermont State has written a new law regarding mortgage loan originators. The new law is named HB 171 and requires mortgage loan originators to be licensed and to acquire the surety bond required of both mortgage brokers and lenders. Should the originator be the employee or agent of a licensee subject to this surety bond requirement, the employer’s surety bond would satisfy the bond requirement; only if the surety bond covered each mortgage originator in the quantity required. The previous law required a surety bond in an amount of $25,000 for brokers and $50,000 for lenders. HB 171 calculates the bond amount by the dollar amount of loans originated yearly in Vermont pursuant to the most recent federal requirements. Lenders must attain a bond in an amount of $50,000 for loans of $1 million or less. The quantity is $100,000 for a loan volume ranging from $1 million to $15 million and $150,000 for a loan volume in surplus of $15 million. Brokers must attain a bond in amounts of $25,000 for a loan volume less than $2 million, $50,000 for a loan volume ranging from $2 million to $5 million, $75,000 for a loan volume between $5 million to $15 million and $100,000 for a loan volume in surplus of $15 million.


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