California mortgage loan servicers have to abide by a new law that was recently passed. The California Department of Corporations implemented a new law enacted under SB 36 and it requires mortgage loan services to obtain a bond that’s equivalent to the bond required of mortgage lenders, which is $50,000. The new law also requires finance lenders and brokers to acquire a minimum $25,000 bond.
The law also allows the Commissioner of Corporations to establish the required bond amount using regulations for residential mortgage lenders, mortgage servicers, finance lenders and finance brokers if the licensee hires one or more mortgage loan originators. The surety bond will be in a quantity calculated by the dollar amount of residential mortgage loans that the licensee and their loan originators accumulate.