Mortgage brokers must abide by a new bill that was enacted in Washington State. The new bill, which is labeled HB 1749, addresses mortgage brokers, who are required under present legislation to be licensed and bonded. The previous law required a license bond in a quantity ranging from $20,000 to $60,000. HB 1749 terminates the existing surety bond amount, and states that the Banking Commissioner will promulgate the surety bond amounts, which will differ according to the yearly loan origination volume of the broker. The new legislation also terminates other alternatives to bonding authorized under the previous law. Should the surety bonds under the new requirements not be obtainable, then the Director of Financial Institutions will relinquish the requirement. HB 1749 provides for a mortgage broker recovery fund. Only individuals acquiring a judgment in court regarding damages sustained as a result of a mortgage broker can make recovery from the fund.
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.