North Dakota state has written a new law concerning mortgage originators. The new law, which is referred to as SB 1260, requires mortgage loan originators to be covered by a surety bond. The originator must acquire a surety bond or has the option to use the surety bond of their employer. When the law was originally drafted, the surety bond would have been in the quantity of $50,000, but the law was modified to require the Commissioner of Financial Institutions to establish the amount required through policy, which must mirror the sum dollar amount of loans originated in the prior year. SB 1260 authorizes the Commissioner of Financial Institutions to raise the surety bond amount required should the protection of the public interest require it. A minimum net worth of $25,000 also must be sustained as well as the surety 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.