443.849. Bonding requirements.

MISSOURI STATUTES AND CODES

443.849. Bonding requirements.

Bonding requirements.

443.849. 1. Residential mortgage loan brokers shall deliver a suretybond to the director prior to the issuance or renewal of a license:

(1) The surety bond shall provide coverage in an amount as prescribedin subsection 2 of this section;

(2) The surety bond shall be in a form as prescribed by the director;

(3) Such bond shall be issued by a bonding or insurance companyauthorized to do business in Missouri and shall secure the faithfulperformance of the applicant, its employees or agents, including mortgageloan originators, in connection with the activities of originating,servicing, or acquiring mortgage loans;

(4) The director may promulgate rules with respect to therequirements for such surety bonds as are necessary to accomplish thepurposes of sections 443.701 to 443.893.

2. The penal sum of the surety bond shall be maintained in an amountthat reflects the dollar amount of loans originated by the residentialmortgage loan broker as determined by the director but in no case shall beless than fifty thousand dollars or more than one million dollars.

3. When an action is commenced on a licensee's bond, the director mayrequire the filing of a new bond.

4. Immediately upon any recovery on the bond, the licensee shall filea new bond.

5. The surety bond is for the protection of borrowers and thedirector may make a claim on the bond on behalf of any borrower sustaininginjury as the result of the actions of a licensee not in compliance with orin violation of any of the provisions of sections 443.701 to 443.893.

6. In lieu of presenting a claim directly, the director may releasethe bond to a borrower or the borrower's attorney to present a claim.

7. The surety may cancel or withdraw the bond under such terms as thedirector may prescribe but the bond shall cover any actions that occurredwhile the bond was in place for the applicable period of limitations understatute and so long as the bond is not exhausted by valid claims ofborrowers.