New bond requirements for Connecticut Mortgage Lenders, Brokers, and Originators

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Effective July 31st 2010- The state of Connecticut has new requirements for Mortgage bonds depending on the dollar amount of total loans originated.

New requirements for Mortgage bonds effective July 31st, 2010. Is your bond sufficient?

Depending on how much business you write, your bond may no longer be sufficient to legally operate in Connecticut.

Here is a quick break down of the new requirements and how to calculate what level of coverage you will need.

1.    Calculate the dollar amount of all Connecticut residential mortgage loans that closed in the course of your business AT ALL CT LOCATIONS from January 1st 2010 to June 30 2010:
$_______

2.    Multiply that figure by 2, to reflect the anticipated business for the second half of 2010:
$_______

FOR MORTGAGE LENDERS AND CORRESPONDENT LENDERS:

If the amount in figure 2 is between 0 and 30 million dollars, the bond amount will be: $100,000

If the amount in figure 2 is between 30 and 100 million dollars, the bond amount will be: $200,000

If the amount in figure 2 is between 100 and 250 million dollars, the bond amount will be: $300,000

If the amount in figure 2 is 250 million dollars or more, the bond amount will be: $500,000

FOR MORTGAGE BROKERS:

If the amount in figure 2 is between 0 and 30 million dollars, the bond amount will be: $50,000

If the amount in figure 2 is between 30 and 50 million dollars, the bond amount will be: $100,000

If the amount in figure 2 is 50 million dollars or more, the bond amount will be: $150,000

We hope this helps clarify the new requirements for the State of Connecticut. Please do not hesitate to contact us directly with any questions regarding this or any other bond.

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Amy E. Johnston
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