In Kansas, new legislation was written relating to mortgage brokers. The new law is labeled SB 240 and requires the banking commissioner to promulgate the surety bond quantity required of mortgage brokers, which must be no less than the existing $50,000 bond if the broker preserves an office in Kansas. The surety bond may not be less than $100,000 if there is not an office preserved in the State. The present law authorizes termination of the surety bond with 30 days warning, and the new law now identifies that such cancelation would not influence the surety’s liability for infringements of the Kansas Mortgage Business Act that arose before the effective date of termination. Additionally, SB 240 states that the surety bond principal and the surety “shall be and remain liable for a time frame of two years from the date of any action or inaction of principal that gives rise to a claim under the bond.”
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.