Bond Increase for Georgia Financial Services Providers
Governor Nathan Deal signed into law House Bill 0143 (as passed by House and Senate bill), a revised subpoena power for the Georgia Department of Finance; to provide for the regulation of persons performing service for financial institutions. This revised law, House Bill 0143, is rather lengthy and we have included the bill for your review. Some of the highlights of HB 0143 are:
As of 12/31/2017, new law takes effect and will be part of the Nationwide (NMLS) System.
(Section 22) A bond (posted) filed with the department shall not be cancelled by either the licensee or the corporate surety except upon notice to the department by registered or certified mail, statutory overnight delivery with return receipt requested, or electronically through the Nationwide Multistate Licensing System and Registry.
Checks may be accepted for collection with payment deferred where the licensee has posted a surety bond in the same manner as prescribed for license money transmitters or licensed payment instrument sellers. The surety bond shall be in the aggregate amount of $10,000 for each location operated by the licensee, if the licensee operates three or fewer locations, plus $5,000 per location for the forth and fifth locations operated by the licensee, plus $2,000 for each location operated by the licensee in the excess of the fifth location.
Mortgage lenders and mortgage brokers revising subsection (A) and (B)
Each licensed or registered mortgage broker shall provide the department with a bond. The bond for a mortgage broker shall be in the principal sum of $150,000 or such greater sum as the department may require as set forth by regulation based on the amount that reflects the dollar amount of loans originated.
The bond for a mortgage lender shall be in the principal sum of $250,000 or such greater sum as the department may require as set forth by regulation based on an amount that reflects the dollar amount of loans originated.
If you are not sure if your existing surety can support the new bond requirements or you think the cost may be prohibitive, please do not hesitate in contacting American Surety Bonds and filling out an application. You can always go to our website at suretybondsagency.com
House Bill 0143 (AS PASSED HOUSE AND SENATE) By: Representatives Williamson of the 115th, Morris of the 156th, Frazier fo the 126th, Williams of the 119th, and Hilton of the 95th.