The Delaware Office of State Bank Commissioner uploaded a new surety bond form for mortgage loan originators to its Web site yesterday. The bond’s funds can be used to benefit any consumers injured by any wrongful act, omission, default, fraud or misrepresentation by a mortgage loan originator.
Any Delaware mortgage loan originator must file a minimum $25,000 surety bond with the state before their licensing applications can be approved. Required surety bond amounts are as follows.
- less than $11,000,000 in annual mortgage loan volume: $25,000 surety bond
- $11,000,001 – $23,000,000 in annual mortgage loan volume: $50,000 surety bond
- $23,000,001 – $35,000,000 in annual mortgage loan volume: $75,000 surety bond
- $35,000,001 – $47,000,000 in annual mortgage loan volume: $100,000 surety bond
- $47,000,001 – $59,000,000 in annual mortgage loan volume: $125,000 surety bond
- $59,000,001 – $71,000,000 in annual mortgage loan volume: $150,000 surety bond
- $71,000,001 – $83,000,000 in annual mortgage loan volume: $175,000 surety bond
- more than $83,000,001 in annual mortgage loan volume: $200,000 surety bond
The state can require a larger surety bond based upon the particular circumstances of an applicant or licensee.
Under the SAFE Act, mortgage loan originators, independent processors and independent underwriters must apply for a mortgage loan originator license before conducting business involving residential mortgage loans on properties in Delaware. Mortgage loan originators must apply for their licenses through the Nationwide Mortgage Licensing System (NMLS).
Mortgage loan originators will submit their original Delaware surety bond forms, as well as other application documents, to:
Office of the State Bank Commissioner
555 East Loockerman St., Ste. 210
Dover, DE 19901
For questions about mortgage loan originator licensing in Delaware, the NMLS call center can be reached at 1 (240) 386-4444.