SB 1110 would revise the existing licensing laws for mortgage lenders, brokers and originators. Existing law requires a minimum $40,000 surety bond. The law requires the bond amount to reflect the licensee’s loan origination volume and is to be set by regulations. Instead, the bill would require mortgage lenders and correspondent mortgage lenders to post a minimum $100,000 surety bond mortgage brokers would have to post a minimum $50,000 bond. The initial bond would be for the licensee’s initial license for the main office. The licensee would have to obtain a bond that covers all loan originators that the licensee sponsors at all locations.
