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Why is a California Mortgage Bond Required?
The bond protects those who sustain damages related to the principal's violation of the provisions of the California Residential Mortgage Lending Act and all amendments and supplements, and or any rules and regulations made by the Commissioner of Business Oversight of the State of California under the California Residential Mortgage Lending Act.
The bonded principal must honestly and faithfully apply all funds received and perform all obligations and requirements under the California Residential Mortgage Lending Act, and pay to the Commissioner of Business Oversight of the State of California or to any persons, all moneys due from the principal under the provisions of the California Residential Mortgage Lending Act.