Connecticut House Bill 5353. The bill, which moved quickly through the House for passage will amongst several other things redefine anyone acting as a mortgage service company to now be a mortgage service provider that is required to be licensed from the banking commissioner. In addition, each main branch must now have its own license, as well as each individual branch office where the mortgage servicer does business. New surety bond requirements will be part of these new licensing requirements.
New Surety Bond RequirementsAlong with the new requirements for all locations where a mortgage service provider does business to be licensed separately, each location will also need to post a surety bond of $100,000. In addition, the bank commissioner may choose to decide if the financial standing of the mortgage servicer will necessitate additional performance surety bond requirements beyond the $100,000 bond. The performance bond will ensure that the mortgage servicer performs their business in an honest manner and has trustworthy accounting practices. It will also ensure that the business conforms to all applicable laws pertaining to the business of mortgage servicing. While the licensing changes will go into effect on January 1, 2015, the changes in the requirements for surety bonds will be law as of November 1, 2014. These new surety bond requirements are in addition to the already mandatory fidelity bonds and errors and omissions bonds that all financial service businesses including mortgage service companies are required to have.
Get Bonded for Your Business QuicklyAs you can see, changes in a business requirement can move quickly. In this case the Connecticut bill was introduced in February of 2014 and became law by June 3rd. This is a good example of why it is so important for every business to be up to date on the surety bond regulations for their industry. When requirements change quickly you want to be ready, and BuySurety can get you there. We know all the latest legislative changes, can put together the surety bond requirements you need quickly and get you bonded to stay legal fast. Bonding businesses since 1989, BuySurety can be there for you when you need to fulfill that new surety bond requirement. Visit our website or call our customer service reps and find out just how easy it is to keep your business up to date with all the state and federal surety bond requirements.
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surety bonds in place as part of their licensing requirements. The good news is that the requirements are not onerous. Here are the details:
Connecticut DMV Surety BondsThe interesting thing about surety bond requirements in Connecticut is that they are required for related businesses other than simply places that sell cars and trucks. The other interesting thing is that they are still called DMV bonds and cover the same basic concept, making sure that the business holds up its end of the agreement with their customers according to the business license. Here are the three types of auto-related businesses that Connecticut requires DMV surety bonds from and the amounts required for the auto dealer bonds:
- New Motor Vehicle Sales – $50,000 DMV surety bond
- Used Motor Vehicle Sales – $50,000 DMV surety bond
- Vehicle Leasing Companies – $10,000 DMV surety bond
- Vehicle Renting Companies – $10,000 DMV surety bond
- Vehicle Repair Ships (including limited repairs) – $5,000 DMV surety bond
Rhode Island Auto Dealer Licensing RequirementsWhile there are certainly other requirements for licensing an auto dealership in Rhode Island, the one we are concerned with here is the surety bond requirement. Luckily, it is a pretty straight-forward requirement that covers all types of auto dealerships. So whether you are selling cars, trucks or motorcycles and regardless of whether you sell used or new vehicles, the requirements are all the same. You will need to post a $15,000 DMV surety bond with the Rhode Island Dept of Motor Vehicles and have proof of it before you apply for that license. Keep in mind that these bonds must expire on December 31st of each year, so purchasing a bond in June will mean still needing to renew in the New Year.
Auto Dealer Requirements in MassachusettsOf course, Massachusetts has to do things a bit differently. Although the state makes the requirement to have auto dealerships licensed and also a surety bond posted, the individual municipalities are who actually does the licensing. So, although you may need to talk to the folks at City Hall in Boston or Springfield regarding the license, the requirements will be the same.
- Selling New Vehicles – This is a Class I License in Massachusetts. You will not be required to post a bond but you will need to have repair facilities on the premises and have used vehicles be an incidental part of your business for this.
- Selling Used Vehicles – This is a Class II License in Massachusetts and you will need to post a $25,000 used car dealer bond as part of your licensing. The bond is to cover any judgements against the business for failure to deliver the title or if the dealership is found to have been selling stolen vehicles or ones that have had their mileage rolled back. In other words, to protect buyers from cheating used car dealers.
- Selling Parts and Junked Cars – Classified as a Class III license, this license does not require a surety bond.
Finding an Auto Dealer or Used Car Dealer BondSo now that you know what is required, do you know how to find the best possible rate for that surety bond? Not every business is the same and that holds true for both auto dealerships and surety bond companies. If you are new to the business without a proven track record or just came through some tough times that shredded your credit rating, you might have trouble getting approved for a surety bond. That is where BuySurety can help. We will work with you to get you approved and make sure you have the right surety bond coverage for your business. Come by our site and request a quote today to see what we have to offer or give us a call to find out more today.
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Small Business Surety Bond NewsIn other news, while the federal Congress may have been shut down for a spell, many states were still hard at work. Here is just a few of the new laws that were passed in the last few months by state legislature that will affect many small businesses around the country: Maine Driver Education Schools – Schools will now be required in Maine to have surety bonds posted as part of their school license. The bond will ensure that the school meets the requirements for driver education in the state of Maine. California Car Washes – California passed a bill that would increase the license surety bonds for a car wash business from $15,000 to $150,000. The new surety bond amount will ensure that wages, benefits and damages for employees are fully covered. Connecticut Mixed Martial Arts Studios – These studios were not previously required to post a surety bond, but will now be required to be bonded the same as boxing studios. This bond is to ensure the payment of taxes at these studios. Massachusetts Scrap and Used Tire Transporters – These businesses will now be required to post a surety bond in the amount of $100,000 to cover compliance issues. Vermont Precious Metal Dealers – Any dealers of precious metals in this state will now be required to post a surety bond for $50,000 if they purchase or sell $2,000 of metal or more within a 12 month period.
Looking for License Surety Bonds at a Good Price?All of the surety bonds requirements listed above are part of the licensing of the business. This is probably one of the most common surety bonds that any small business will need. But many small businesses find they have a hard time qualifying for a business license bond because they are still a new business. If this sounds like a familiar problem, come and talk to us. BuySurety specializes in small business license bonds and can help you to get bonded today.
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Deferred Deposit Lenders and License Bond RequirementsIn Montana, if you run a deferred deposit business, commonly referred to as “payday loans” since most people who use them are borrowing against their next paycheck, you now need a license bond. In fact, you will now need a $10,000 license bond for each location, a smart move since these seem to pop up in multiple locations in many cities. Although in the past the license bonds were required to cover damages to clients for actions taken by the businesses, this new law will also cover civil penalties and restitution ordered by the court.
Mortgage Servicers Will Need Surety BondsA new law has been passed that will required mortgage servicers in Connecticut to now post a $10,000 license bond that will cover the business and all of its branch offices. The license bond will be to cover all actions and funds received by the mortgage service office and to ensure that the office performs in accordance to the laws of Connecticut. Direct action on the bond will be permitted and the bond’s liability cannot be more than its penal sum. Ohio is also looking at enacting requirement for a license bond for mortgage servers. However Ohio is considering a requirement of a $250,000 license bond for the first location and a $10,000 bond for each separate location.
Offering License Bonds at Reasonable RatesIf your business is required to have a license bond, do you have a reliable service that can offer you one at a reasonable rate? BuySurety has been in the business of offering surety bonds at reasonable rates since 1998. We can work with your company to help you get bonded for exactly the kind of surety bond you need or are required to carry, and for a great rate. Even if your credit rating is poor, we can help. So why not contact BuySurety today and find out just how easy it is to qualify and receive the right surety bond at the best possible price, no matter what your credit rating or how long you have been in business.
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Mortgage Loan OriginatorsIn Illinois the Governor has signed off on a bill that will now require mortgage loan originators that are registered with the Nationwide Mortgage Licensing System to be bonded if they are not now required to do so. The blanket permit and licensing bond would be posted by institution they were registered with and would cover them the same as the currently bonded mortgage originators are now. A bill is currently in legislature in North Carolina that will require the registration of any “transitional mortgage originator” that is licensed outside the state and will be doing business in North Carolina for no longer than 120 days. As part of the licensing, a surety bond that is equal to the current surety bond requirements for a mortgage originator will be required.
Pennsylvania Motor Vehicle Sales FinanceThe Senate Appropriations Committee is currently reviewing possible changes to the surety bond requirements for a sales finance company or collector/re-possessor when it comes to motor vehicles. The current licensing surety bond amount is $5,000 but this amount will go up to $10,000 for a permit surety bond when passed. The bill has already passed the House and gone through one committee.
Connecticut and Massachusetts Money TransmittersFor money transmitters that handle foreign deposits, changes are being made in Massachusetts regarding the posting of money transmitter bonds. With the passage of HB 876, money transmitters that deal with foreign deposits will be required to post a $50,000 money transmitter surety bond plus additional $10,000 bonds for each additional location. The bond amount will be capped at $450,000. Meanwhile, in Connecticut the requirements regarding surety bonds for money transmitters have been changed. The statute of limitations for claiming on a surety bond has been changed from a two year tail to a two year limitation. If your company needs surety bonds for any reason, you can be sure that BuySurety has the right surety bonds at the right price. Hard to finance? Poor credit risk? Call our helpful customer service line today and find out just how easy we can make it for you to have the surety bonds your business requires at a price you can afford.
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