SB 279 is a new bill that was enacted in Alaska State concerning both mortgage brokers and lenders. The new bill modifies the present surety bond requirements for mortgage brokers and mortgage lenders to fulfill the new federal standards for mortgage loan originators. The previous bill required a $25,000 surety bond. SB 279 requires a surety bond in a quantity which is established through regulations. The new legislation inserts a three-year tail to the surety bond in the statute. The previous law stated that the surety bond only had to remain active until the mortgage lender or broker’s license is withdrawn or canceled. The surety bond would have to be active for three years following the cancelation of the license. SB 279 also provides for a transition so that the required surety bond quantity will stay put at $25,000 until the policies for the bond prescribed in the new legislation are active.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.