Tenn. Comp. R. & Regs. 0180-17-.08 - SURETY BOND REQUIREMENTS

Current through March 20, 2022

(1) As a condition of renewing a mortgage lender or mortgage loan broker license, the licensee shall file a surety bond in a form approved by the commissioner, providing coverage for each of its mortgage loan originators in an amount reflecting the dollar amount of Tennessee residential mortgage loans originated by the licensee in the calendar year immediately preceding the calendar year in which the renewal application is filed, as follows:
(a) For mortgage loan brokers:
1. Less than $10,000,000 in loans - bond amount of $45,000;
2. $10,000,000 or more in loans, but less than $50,000,000 - bond amount of $90,000; or
3. $50,000,000 or more in loans - bond amount of $135,000.
(b) For mortgage lenders:
1. Less than $10,000,000 in loans - bond amount of $100,000;
2. $10,000,000 or more in loans, but less than $50,000,000 - bond amount of $200,000; or
3. $50,000,000 or more in loans - bond amount of $300,000.
(2) If the renewal application is being filed in the year in which the license was issued, or in a year in which the license was issued in the immediately preceding calendar year, the mortgage lender or mortgage loan broker shall file as a condition of renewal a surety bond providing coverage for each of its mortgage loan originators in the amount of $200,000 for a mortgage lender and in the amount of $90,000 for a mortgage loan broker.
(3) If the applicant or licensee is a combination of a mortgage lender, mortgage loan broker, and/or mortgage loan servicer, the applicant or licensee is only required to provide one (1) surety bond, which shall be in the highest amount required if the applicant or licensee were solely a mortgage lender, mortgage loan broker, or mortgage loan servicer, and not a combination thereof. An applicant or licensee that is solely a loan servicer shall maintain as a condition of renewal a surety bond in the amount of $200,000.

Notes

Tenn. Comp. R. & Regs. 0180-17-.08
Original rule filed January 25, 1989; effective May 1, 1989. Repeal and new rule filed May 28, 2010; effective October 29, 2010.

Authority: T.C.A. ยงยง 45-1-107(h), 45-13-103 and 45-13-204.

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