Oregon State implemented a new law relating to mortgage brokers and bankers. The new law is named HB 2189 and requires mortgage bankers and mortgage brokers to acquire a surety bond or a letter of credit (LOC) to cover the actions of the loan originators. The surety bond has to cover the broker’s or the banker’s actions if no originators are employed. The quantity of the surety bond required will be determined by regulations, but it must be at least $50,000 under the new law. The previous law required bankers and brokers to attain a $25,000 surety bond or LOC, plus $10,000 per branch. The surety bond/LOC was capped at $50,000. HB 2189 became active upon enactment.
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.