Mortgage loan originators must abide by new legislation in the State of Washington. The new law is titled HB 1621 and requires consumer loan companies and mortgage loan originators to be licensed. The lender must acquire a bond and the loan originators must be covered by their employer’s surety bond. HB 1621 modifies the surety bond requirements for lenders. The previous law required a $100,000 surety bond for each location, for up to five branches, and $10,000 for additional branches. The bankers performing loans secured by real property had to sustain a surety bond at a minimum of $400,000. The new law establishes the minimum quantity of the surety bond at $30,000, and the bond amount must be calculated by the yearly dollar amount of loans originated. The present law has the surety bond run to the State for the advantage of those harmed by the licensee. The surety bond must be written by a state authorized surety company; and the aggregate liability of the surety is restricted to the penal sum of 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.