The state of New Jersey introduced a new law concerning residential mortgage brokers. The new law, which is named AB 3186, requires residential mortgage lenders and brokers to acquire a blanket surety bond in a quantity no less than $25,000 from a surety company permitted to do business within the State. The Commissioner of Banking and Insurance will establish the surety bond amount required through the regulations. The surety bond will cover the broker or lender’s qualified licensees, all mortgage loan originators and the broker or lender’s other staff and individual agents. The surety company has the option to terminate the surety bond with 30 days notification. AB 3186 encloses a net worth stipulation in addition to the surety bond for mortgage lenders, brokers and loan originators.
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.