a) In
lieu of a paper surety bond, each licensee shall file and maintain an
electronic surety bond in the NMLS in conformance with Section 3-1 of the Act.
The amount of the bond shall be not less than $25,000 and in an amount
according to the scale in subsection (b).
b) Each Mortgage Loan Originator must be
covered by the electronic surety bond filed and maintained by his or her
employing licensee pursuant to subsection (a). Registered exempt companies or
entities shall file and maintain electronic surety bonds in the same manner as
subsection (a) for the purpose of covering their Mortgage Loan Originator
employees or sponsored individuals. Licensed mortgage brokers and mortgage
bankers and exempt company or entity registrants must file and maintain an
electronic surety bond that provides coverage for each sponsored Mortgage Loan
Originator in an amount that reflects the dollar amount of Illinois mortgage
loans applied for or originated by its Mortgage Loan Originators during the
preceding calendar year. Exempt independent loan processing entity registrants
must file and maintain an electronic surety bond in the same manner as
subsection (a) that provides coverage for each sponsored Mortgage Loan
Originator in the amount of $50,000. The surety bond amount will be set for
each licensed mortgage broker and mortgage banker and registered exempt company
or entity in accordance with the following scale, or, for exempt independent
loan processing entity registrants, the $50,000, based upon Illinois
residential mortgage loans brokered, processed, underwritten, funded,
originated, serviced or purchased, as the case may be, during the preceding
calendar year:
|
Loans
|
Bond Amount
|
|
$0 - $5,000,000
|
$25,000
|
|
$5,000,001 - $20,000,000
|
$50,000
|
|
$20,000,001 - $50,000,000
|
$75,000
|
|
$50,000,001 - $100,000,000
|
$100,000
|
|
Over $100,000,000
|
$150,000
|
The Director may require licensed mortgage brokers and
mortgage bankers and registered exempt companies to file reports of Illinois
mortgage loan volumes with the Director or NMLS for purposes of determining
that the bond is in an amount that complies with the scale in this subsection
(b). Based upon these reports, the Director may cause licensed mortgage brokers
and mortgage bankers and registered exempt companies to adjust the amount of
the bonds to an amount that complies with the scale in subsection (b).
c) Each electronic surety bond
required pursuant to Section 3-1 of the Act and this Section shall be for a
perpetual term.
