Some states slow to implement new mortgage broker law

New Mortgage Broker LawEven though a new federal law was passed back in 2008 to toughen up requirements for licensed mortgage brokers, some states have been slow to implement their version of the new mortgage broker law, which in some states has increased the amount of surety bond brokers must carry. Earlier this month, I wrote about some of the states where deadlines to comply with new rules have yet to take effect.

I’ve since discovered there are more states where deadlines fall somewhere in 2010 for compliance with the federal SAFE Act rules. Here are a few more states where it took a while to get new laws into effect. Some of these deadlines are coming up this year:

  • Tennessee: Any brokers grandfathered in from having to comply with the new rules have until July 31, and then they must be re-licensed through the Tennessee Department of Financial Institutions. The state now has a net-worth requirement of $25,000 and a surety-bond requirement of $90,000.
  • Utah: Established brokers have to pass both the national and local broker’s exam by the end of the year, but new brokers need to get it done soon, by May 1. No surety-bond requirement is in force here.
  • Ohio: One of the stiffer surety-bond requirements here — $50,000 for main offices plus $10,000 per branch, up to $150,000 for companies and $100,000 for individuals. This one just went into effect in January.
  • Nevada: This new broker law took effect last October, requiring a surety bond of $50,000 for any principal brokerage office and $25,000 additional if there is more than one branch.
  • Oregon: Effective last July, the surety bond amount was raised from $25,000 plus $10,000 per branch to a minimum of $50,000.

As you can see, the new mortgage broker law is a confusing patchwork, with regulations and deadlines that are different in each state. If you need a mortgage broker bond, the experts at SuretyBonds.com can help you make sure you have the coverage required in the states where you operate.

Photo via Flickr user Hassan & Mariko

About the Author

Carol Tice
Business journalist Carol Tice has written for Entrepreneur Magazine, the Seattle Times, Dun & Bradstreet and many others. She is a frequent contributor to SuretyBonds.com.

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