Recent Actions Impacting Commercial Surety

from The Surety & Fidelity Association of America

by Lenore S. Marema & Daniel Wanke

Mortgage Broker Bonds. H.R. 3221, the comprehensive housing legislation that was enacted this session contains a requirement for a study of the regulation of mortgage originators. It requires the Secretary of Housing and Urban Development (HUD) to conduct a study within a year for strengthening consumer protections, enhancing examination standards and establishing performance bonding requirements, among other issues, for mortgage originators or institutions that employ such brokers.

The Senate bill also included a comprehensive new system for licensing and regulating mortgage originators. The Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators will create the Nationwide Mortgage Licensing Registry (National Registry). State licensed mortgage originators will have to be state-licensed under new minimum licensing standards that HR 3221 creates for the states. Among the licensing requirements is a net worth or surety bonding requirement.

States are given two years to put these minimum licensing requirements in place or HUD would put such a system in place for loan originators from states that are not compliant. If enacted into law, it would mean every state would have to have either net worth or surety bond requirements in place for mortgage brokers in the next two years. Of note is that the study HUD must conduct next year includes establishing performance bond requirements. SFAA has contacted the CSBS and offered assistance in developing the bonding requirement and form, and will be meeting with them in the near future. NASBP also has been in contact with CSBS.

Comments

[party bags]

Commercials are very influential to the extent that different versions of it are made. People are even sometimes repeating the trade mark language it has made.

[Double Glazing]

Government and commercial contracts do, however, require surety bonding to protect themselves against contract breech, fraud, or incompletion. For many large construction firms, getting bonded is a simple process.