Section 493.159 - Surety bond.
MORTGAGE LOAN ORIGINATOR LICENSING ACT (EXCERPT)
Act 75 of 2009
493.159 Surety bond.
Sec. 29.
(1) Each mortgage loan originator must provide to the commissioner or be covered by a surety bond that meets the requirements of this section.
(2) If the mortgage loan originator is an employee or exclusive agent of a person subject to this act and that person has provided the commissioner with a surety bond that satisfies the requirements of this section, the commissioner may accept that surety bond in lieu of the mortgage loan originator's surety bond obligation under subsection (1).
(3) All of the following apply to a surety bond described in subsection (1) or (2):
(a) A surety bond described in subsection (2) must provide coverage for each mortgage loan originator covered by that bond in 1 of the following amounts:
(i) If the mortgage loan originator did not close any mortgage loans in the preceding calendar year, or the sum of the principal amounts of mortgage loans closed by the mortgage loan originator in the preceding calendar year is less than $12,000,000.00, as determined by the commissioner, $10,000.00.
(ii) If the sum of the principal amounts of mortgage loans closed by the mortgage loan originator in the preceding calendar year is $12,000,000.00 or more and less than $24,000,000.00, as determined by the commissioner, $25,000.00.
(iii) If the sum of the principal amounts of mortgage loans closed by the mortgage loan originator in the preceding calendar year is $24,000,000.00 or more, as determined by the commissioner, $50,000.00.
(b) The surety bond shall be in a form as prescribed by the commissioner.
(c) The commissioner may promulgate rules with respect to the requirements for surety bonds under this section that are necessary to accomplish the purposes of this act.
(4) If an action is commenced on a bond described in this section, the commissioner may require the filing of a new bond. If there is a recovery in that action, the mortgage loan originator shall immediately provide to the commissioner a new surety bond that meets the requirements of this section.
History: 2009, Act 75, Eff. July 31, 2009