Minnesota House Bill 2600/Senate Bill 264 would require all mortgage loan originators to be license and to obtain a loan orinators bond either on their own, or through their employers bond. The commissioner of Commerce will determine the amount the bond must be, and will be determined by the dollar amount of loans originated.
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Minnesota Mortgage Loan Originators
July 29, 2010 by admin
Category: Mortgage Banker, Mortgage Broker Surety BondComments (0)
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Debt Management Bonds
July 27, 2010 by admin
The Uniform Debt Management Services Act was recently re-introduced to many states. This act requires debt-management service providers to secure a $50,000 surety bond to be issued to the State. The State will also accept a certificate of insurance, bonds or other obligations of the US or the State. The bill would require sureties to have an “A” rating from a nationally recognized rating service and be licensed in the state.
Category: UncategorizedComments (0)
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Minnesota Plumber License Bond Requirements Updated
July 22, 2010 by admin
Minnesota House Bill 2781 that was recently introduced would do away with current exemptions to plumbers employed by master plumbers. Instead these plumber would have to comply with license bond requirements, including posting a minimum $25,000 Plumber License Bond as per current law.
Category: License and Permit, UncategorizedComments (0)
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Vermont Mortgage Loan Servicers Bond
July 20, 2010 by admin
SB 287, which has recently passed in the senate, would require both license and a $100,000 surety bond form Mortgage Loan Servicers in the State of Vermont. The Commissioner of Banking, Insurance, Securities and Health Care Administration would be able to adjust the amount of the bond that would be put in place to ensure compliance with the applicable laws and regulations of the state, as well as ensuring payment of all funds due to the state or any person.
Category: License and Permit, Mortgage Banker, Mortgage Broker Surety BondComments (0)
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Florida Debt Collection Angency Bond Requirement Update
July 16, 2010 by admin
Enacted into law, SB 2086 requires Debt Collection Agencies in the state of Florida to obtain a surety bond in the amount not less then $50,000 and not to exceed $1 million dollars. The actual bond amount will be based on each individual agencies business volume.
Category: License and Permit, UncategorizedComments (0)
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Alaska Mortgage Brokers/Lenders Bond Requirement Changes
July 13, 2010 by admin
Alaska revised its current license bond requirement ($25,000 Bond) for Mortgage Lenders/Brokers to comply with updated federal standards for for Mortgage Loan Originators. The new law will require a bond (amount yet to be determined through regulation), as well as adds a three year tail to the bond (currently the bond only had to be in place for as long as a license was active). This tail means that the bond will have to be in place for 3 additional years after the termination or revoking of a license. The new bill does provide a transition period ( maintaining the current $25,000 bond requirement) until the new regulations take effect.
Though not all details are finalized, applicants can expect a difficult time gaining approval for the new bond due to the three year tail.
Category: Mortgage Banker, Mortgage Broker Surety BondComments (0)
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Americans Credit Scores at an All time Low: How This Effects Your Bonding.
July 12, 2010 by admin
A new report out today and provided by FICO show that just over 25% of Americans, or 43.4 Million people, now have a credit score of 599 or lower. It is expected that this number will continue to grow in the coming months.
Everyone know that your credit score is very important when it comes to borrowing, but did you know that you credit can greatly affect your surety bond premium and even eliminate your ability to be bonded with certain bond types?
Commercial Bonds: An applicant with good credit (generally considered 650 or better and minimal to no public records) can expect rates from anywhere between 1-5% (along with credit, Bond form, State, and financials can effect where your rate falls). Those who do not qualify for the standard market will find themselves paying a 10-15% rate for the same bond, and in the most extreme cases may be declined all together.
Court Bonds: Those with poor credit can still be bonded, but a higher premium can be expected along with the requirement that a Lawyer have joint control.
Contract bonds: Currently we have no markets that are willing to write contract bonds in poor credit cases (though some markets will write this, they typically require 100% collateral)
Category: Bad CreditComments (0)
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Texas Mortgage Loan Originators: HB 10
August 15, 2009 by admin
Introduced on the tenth of February, 2009, and Enacted on June 19th of the same year, House Bill 10 Requires Texas Mortgage Originators (regardless of whether they are employed by a mortgage broker/bank or not) be both licensed, and to either 1) Obtain and post a surety bond for their license or 2) pay into a recovery fun.
This Bill applies to those licensed and engaging in the sale of a Motor Vehicle that is used as a dwelling, or those making, transacting or negotiating property tax for a principle dwelling.
This Bill applies to Credit Unions.
Bond requirements or Recovery fund fees are yet to be announced as of the enactment date of this Bill.
Category: Mortgage Banker, Mortgage Broker Surety BondComments (0)
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Texas Payment Bond: HB 2515
August 12, 2009 by admin
Texas House Bill 2515, Introduced on March, 5 2009 and enacted June, 19 2009, increases the current $25,000 Payment bond to $50,000. This increase effects any municipalities or joint boards created via the Transportation Code. Any other government entity remains at a $25,000 requirement.
Category: Contract BondsComments (0)
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Bid Bond Enactments: Tennessee
April 21, 2009 by admin
The State of Tennessee has enacted Senete Bill 4170 which requires a protest bond in order to protest or stay an awarded contract. The protest bond is required to be 5% of the lowest bid evaluated, though if the lowest bid is below one million dollars minority/small businesses may petition for an exemption from the protest bond requirement.
For those that are required to obtain a protest bond, the bond its self is payable to the State of Tennessee.
Category: Contract Bonds, HomepageComments (0)
