Oklahoma enacts $100,000 bond requirement for mortgage lenders

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Oklahoma HB 1828, effective as of November 1, 2013, added new requirements to the state’s mortgage lender licensing process. This includes posting and maintaining a $100,000 mortgage lender surety bond.

The legislation, signed into law by Oklahoma Governor Mary Fallin, dictates that entities that satisfy the definition of both a mortgage lender and a mortgage broker under the Oklahoma SAFE Act will be required to obtain a mortgage lender license.

The Oklahoma Department of Consumer Credit (OKDOCC) has specified the following requirements for mortgage lenders continuing to conduct business:

  • obtain a license through the Nationwide Mortgage Licensing System
  • maintain a $100,000 credit-based surety bond
  • maintain a minimum net worth of $25,000
  • be subject to financial and performance examinations by the OKDOCC

Mortgage lenders who were not yet in business at the time of the passing of Oklahoma HB 1828 must also pay an initial licensing fee of $1,660 to the OKDOCC. The OKDOCC exempted previously-licensed mortgage lenders from this fee.

Surety bond requirements exist to prevent unethical or illegal business decisions. Surety bonds work by legally binding three separate parties together to protect consumers. These three parties are the obligee (entity requiring the bond), the principal (entity required to purchase the bond) and the surety (entity that underwrites the bond).

If you need a surety bond in Oklahoma or any other state, contact the experts at SuretyBonds.com online 24/7 or by phone at 1 (800) 308-4358 Monday through Friday between 7 a.m. and 7 p.m. CST. We strive to make the bonding process fast, easy and accurate for each and every client.