SB 355: License Bond – Mortgage Originators
This law requires mortgage originators to be covered by a surety bond. If this is not feasible this new law will permit the Superintendent of Banking to establish a recovery fund. The new law requires that the surety bond that is covering the mortgage loan originators must be posted in an amount that reflects the dollar amount of loans originated according to the Superintendent’s determination. The originator can be covered underneath of their employer’s surety bond or if they are the exclusive agent of a mortgage broker, mortgage banker, industrial lender or a consumer lender. Those positions are subject to bond requirements under existing law, the employer’s bond will suffice for the bond requirements for originators. The bond amount must reflect the dollar amount of the loans originated for an employer’s bond.
