SB 279 revises the existing license bond requirements for mortgage brokers
and mortgage lenders to comply with new federal standards for mortgage loan originators. Prior law required a $25,000 surety bond. The new law requires a bond in an amount as determined through regulations. Further, the new law adds a three-year tail to the bond in the statute. Under prior law, the bond only had to remain in place until the mortgage lender or broker’s license is revoked or terminated. The bond would have to be in place for three years after the revocation or termination of the license. Of note, the bill provides for a transition so that the required bond amount will remain $25,000 until the regulations for the bond prescribed in the new law take effect.