HB 169 is a new Wyoming State law that concerns any organizations that are licensees under the Uniform Consumer Credit Code. The new law requires all organizations that are licensees under the state Uniform Consumer Credit Code to acquire a surety bond to cover individual mortgage loan originators in employment or under contract with the licensee. HB 169 requires mortgage loan originators to be licensed and covered by their employer’s surety bond. The surety bond quantity must be calculated by the volume of residential mortgage loan activity and will be established using regulation. The surety’s aggregate liability is restricted to the amount of the surety bond and must be issued by a state authorized surety. If a consumer is harmed by a breach of the law by a licensee or one of its employees, the surety bond must be forfeited to the State for the benefit of any individual damaged in a quantity that will fulfill the defiance or the surety bond in its entirety if the violation surpasses the quantity of the surety bond. The surety bond must stay active until released in writing by the State or it will terminate two years after the surrender, revocation or expiration of the license. All of these requirements are taken from the present legislation concerning mortgage broker bonds.
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.