The State of Indiana enacted a new bill relating to mortgage lenders. The new bill is labeled SB 328 and requires first lien mortgage lenders and consumer lenders to satisfy the terms of new federal standards regarding the licensing of mortgage loan originators. Should these lenders utilize a licensed mortgage loan originator, such an originator would be required to be covered by their employer’s surety bond. The surety bond would have to be in a quantity that mirrors the dollar amount of mortgage transactions originated according to the determination of the Director of the Department of Financial Institutions. SB 328 also allows the Director to implement rules to apply the surety bond requirement.
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.