45-724 Surety bond; requirements. - Nebraska Statutes

45-724. Surety bond; requirements.(1) Except as provided in subsection (2) of this section, an applicantfor a mortgage banker license or registration shall file with the departmenta surety bond in the amount of one hundred thousand dollars, furnished bya surety company authorized to do business in the State of Nebraska. The suretybond also shall cover all mortgage loan originators who are employees or independentagents of the applicant. The bond shall be for the use of the State of Nebraskaand any Nebraska resident who may have claims or causes of action againstthe applicant or against an individual who is a mortgage loan originator employedby, or in an independent agent relationship with, the applicant. Submissionof a rider to an existing bond indicating that the required coverage is outstandingand evidencing the beneficiaries required in this subsection shallsatisfy the requirements of this section. The bond or a substitute bond shallremain in effect during all periods of licensing or registration.(2) Upon filing of the mortgage report of condition required by section 45-726, a mortgage banker licensee or registrant shall maintain or increaseits surety bond to reflect the total dollar amount of the closed residentialmortgage loans originated in this state in the preceding calendar year in accordance with the followingtable. A licensee or registrant maydecrease its surety bond in accordance with the following table if the suretybond required is less than the amount of the surety bond on file with thedepartment.Dollar Amount of Closed Residential Mortgage LoansSurety Bond Required$0.00 to $5,000,000.00$100,000.00$5,000,000.01 to $10,000,000.00$125,000.00$10,000,000.01 to $25,000,000.00$150,000.00Over $25,000,000.00$200,000.00(3) Should the department determine that a mortgage banker licenseeor registrant does not maintain a surety bond in the amount required by subsection(2) of this section, the department shall give written notification to themortgage banker licensee or registrant requiring him, her, or it to increasethe surety bond within thirty days to the amount required by subsection (2)of this section.(4) At any time the director may require the filing of a new or supplementalbond in the form as provided in subsection (1) of this section if he or shedetermines that the bond filed under subsection(1) or (2) of this section is exhausted or is inadequate for anyreason, including the financial condition of the licensee, the registrant, or the applicant for a license or registration. The newor supplemental bond shall not exceed one million dollars. SourceLaws 1989, LB 272, § 12; Laws 1993, LB 217, § 2; Laws 2003, LB 218, § 6; Laws 2006, LB 876, § 31; R.S.Supp.,2008, § 45-709; Laws 2009, LB328, § 9; Laws 2010, LB892, § 8.