Alabama Mortgage Loan Originator Bond
Alabama SB 249, which was enacted on May 21, 2009, created a licensing requirement for all mortgage loan originators, as well as a requirement for them to be covered by a surety bond. However, the law does allow mortgage loan originators to use the surety bond of someone whom they are an employee or an exclusive agent of, as long as that person is subject to the Mortgage Brokers License Act (SB 232) or the Alabama Consumer Credit Act (SB 234). This license bond needs to provide ample coverage for each mortgage loan originator in an amount equal to the amount of the originated loans.
This new law became effective in Alabama on June 1, 2009, but the licensing requirements will not go effective until June 1 of this current year.
The following two tabs change content below.
Latest posts by Vic (see all)
- Credit Plan Lenders Bond for Virginia - March 16, 2012
- Public Official Bond for Snohomish Polytechnical College (WA) - March 15, 2012
- $25,000 West Virginia Reclamation Bond - March 14, 2012