Massachusetts Mortgage Loan Originator or Lender Bond
Massachusetts Mortgage Loan Originator or Lender Bond Information
A $25,000 Mortgage Loan Originator Bond is required per Massachusetts General Laws, chapter 255F, section 12, and the Division's implementing regulation at 209 CMR 41.04(2)(b) The surety bond is required for licensed mortgage loan originators and the bond is filed with the Treasurer and Receiver General of the Commonwealth of Massachusetts for the use of the Commissioner of Banks. The bond is issued to satisfy any past due Division costs, assessments, penalties, or other obligations of the principal. Additionally, the bond exists for the benefit of consumers or borrowers to guarantee consumer fees and other applicable charges are correctly accounted for and properly managed.
What does a Mortgage Loan Originator or Lender Bond Protect Against?
The surety bond ensures that the principal delivers on all written agreements or commitments with consumers or borrowers, accurately and properly accounts for all funds received from consumers and borrowers as a licensed business, and complies with Massachusetts General Laws chapter 255F, and the statutes, rules, and regulations of the licensed business in Massachusetts.