SB 351 is a new bill that was enacted in Montana in regards to mortgage loan originators. The new bill incorporates the federal definition of mortgage loan originators into its legislation and authorizes such individuals to conduct business for only one mortgage broker or mortgage lender. All mortgage lenders, brokers and originators must be licensed and lenders/brokers also must license and bond each branch office. Mortgage originators must obtain or be covered by a surety bond, and if they are the member of staff or exclusive agent of a lender/broker, they have the option of using their employer’s bond for coverage. The surety bond amounts for lenders and brokers are like so: $25,000 for an annual loan volume that does not surpass $50 million; $50,000 for a yearly loan volume that does not surpass $100 million; and $100,000 for a yearly loan volume in surplus of $100 million yearly. In place of the surety bond, a mortgage broker can fulfill a net worth requirement calculated by the dollar amounts of the loans originated. The net worth obligation will be promulgated by regulation. Any brokers accepted by the federal Department of Housing and Urban Development (HUD) will be deemed to fulfill the Montana net worth requirement provided that the HUD net worth requirement coressponds to the surety bond quantity that would be required of the broker.
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. He has held a range of different roles within the surety industry, from agent assistant to bond issuer, which gives him a unique insider perspective on surety related topics.