Enacted in Hawaii, a new law is now in place affecting mortgage loan originators within the state. The new law which is labeled SB 1218 integrates the federal definition of a mortgage loan originator. The law also requires originators to obtain a surety bond in a quantity that would be calculated by the dollar amount of the loans originated. Should the loan originator be an employee or an exclusive agent of a licensee, the coverage under the employer’s surety bond would satisfy the bonding requirements. SB 1218 requires the surety bond to cover all of the originators. The State Governor prevented the bill, but the legislature reversed the veto and SB 1218 became law. SB 1218 was introduced on 1/27/2009 and enacted on 7/15/2009.
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.