Indiana State has added a new law relating to loan brokers and mortgage loan originators within the state. Titled HB 1646, the new law requires loan brokers, mortgage loan originators and principal managers to be licensed. Both originators and principal managers are staff of the loan broker, and HB 1646 requires that the broker’s surety bond must cover the actions of such personnel. The surety bond figure is calculated by the sum amount of residential mortgage loans originated in the prior calendar year. If the sum is $5 million or less, the surety bond amount is $60,000; with amounts greater than $20 million, the surety bond amount is $75,000. As initially introduced, these surety bond amounts were $50,000, $100,000 and $150,000, correspondingly. The new law became active on January 1st, 2010.
Eric is the Webmaster of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.