Mortgage loan originators are affected by a new law in the state of Delaware. Named SB 73, the new law demands that mortgage loan originators be licensed and covered by a surety bond in a quantity calculated by the dollar amount of the loans originated. Should the loan originator be an employee or an exclusive agent of a licensee subject to existing bond requirements, coverage under the employer’s bond can satisfy the bonding requirements. The present law asks mortgage brokers to acquire a $25,000 surety bond while mortgage lenders must acquire a surety bond of $50,000 to $200,000, based on loan volume. SB 73 requires the surety bond to supply coverage for all originators, and it leads the State Bank Commissioner to implement rules to add the bond requirements. The surety bond quantity must reflect the volume of loans originated. SB 73 was enacted on July 6th, 2009.
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.