On June 3, Governor Dannel Malloy of Connecticut signed House Bill 5353 into law. This bill sets new licensing requirements, specifically that any person acting as a mortgage servicer must obtain a license from the banking commissioner for his or her main office and each branch office from which he or she conducts business. This requirement goes into effect on January 1, 2015.
This licensing change renames mortgage servicing companies as “mortgage servicers” and does the following and more:
- modifies who is subject to licensure
- expands the list of services subject to licensure
- adds new licensing, application, fees, bonding and record keeping requirements
- specifies standards of conduct for mortgage professionals
The bill requires Connecticut mortgage servicers to post a $100,000 surety bond per place of business. The new law also states that additional bonds may be required based upon the financial standing of a mortgage servicer or mortgage lender licensee. The surety bond ensures the honest performance of all mortgage agreements, the trustworthy accounting of all funds associated with the mortgage business, and the conducting of business in compliance with all applicable laws. This bonding requirement goes into effect on October 1, 2014.
Mortgage servicers in Connecticut are also required to post fidelity bond and errors and omissions coverage. The fidelity bond is based on the mortgage servicer’s volume of servicing activity with the minimum amount required being $300,000. This coverage may provide for a deductible amount not to exceed the greater of $100,000 or 5% of the principal amount.
The experts at SuretyBonds.com are ready to assist you with all of your bonding needs. When you’re ready to get bonded, give us a call at 1 (800) 308-4358 Monday through Friday between 7 a.m. and 7 p.m. CST. Or, you can fill out our instant online contact form. You’ll be connected with an expert surety specialist who will walk you through each step of the bonding process.