(a) Each mortgage loan originator shall be covered by a surety bond in accordance with this section. In the event that the mortgage loan originator is an employee of a lender or loan broker licensed under chapter 14 of title 19, the surety bond of such lender or loan broker as required in accordance with the provisions of such chapter, increased to any higher amount, required by this section can be used in lieu of the mortgage loan originator's surety bond requirement.
(1) The surety bond shall provide coverage for each mortgage loan originator in an amount as prescribed in subsection (b).
(2) The surety bond shall be in a form as prescribed by the director, or the director's designee.
(3) The director, or the director's designee, may promulgate rules or regulations with respect to the requirements for such surety bonds as are necessary to accomplish the purposes of this chapter.
(b) The penal sum of the surety bond shall be maintained in an amount that reflects the dollar amount of loans originated as determined by the director, or the director's designee, by regulation adopted within one hundred twenty (120) days of the effective date of this section.
(c) When an action is commenced on a licensee's bond, the director, or the director's designee, may require the filing of a new bond.
(d) Immediately upon recovery upon any action on the bond the licensee shall file a new bond.
(e) The director, or the director's designee, shall, within one hundred twenty (120) days of the effective date of this section, promulgate rules or regulations with respect to the requirements for surety bonds as are necessary to accomplish the purposes of this chapter.
History of Section.
P.L. 2009, ch. 148, § 3; P.L. 2009, ch. 160, § 3; P.L. 2011, ch. 145, § 3.