Surety Bond Deadline - December 31, 2017

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Thu, 06/01/2017 - 8:00am to Wed, 01/10/2018 - 5:00pm

Don’t risk license expiration! Mortgage brokers and lenders are required to maintain surety bond coverage and must utilize the Electronic Surety Bonds (ESB) feature through NMLS to meet Georgia’s surety bond requirements for the 2018 Annual License year. 

The conversion process began in January and ends December 31, 2017.  A converted bond is the conversion of a licensee’s paper bond, including any associated riders for such paper bond, issued outside the NMLS (collectively referred to as “original bond”) into an electronic form.  The bond number on the ESB should be the same as the number that appears on the original bond form that was submitted in hard copy.  The amount of the ESB must represent the current bond obligation, including all riders issued since the original date of the bond.

Georgia requires that a Control Person (MU2) be designated as a signatory for the ESB execution process.  Once the Control Person has signed the bond, the bond must be marked “Ready” by a company user.  Marking a bond “Ready” indicates an executed original or converted bond is ready for delivery to the regulator. 

To complete the bond submission process, the company user must return to the company account and complete the Mark Ready process to prepare the bond for submission to the regulator.

Surety Bond Amount Increase:  The Georgia legislature increased the minimum bond coverage to $150,000 for a licensed or registered mortgage broker and $250,000 for a licensed or registered mortgage lender.  The increase in minimum bond coverage for brokers and lenders will be enforced on December 31, 2017, which coincides with the deadline to convert company surety bonds to an electronic format through NMLS.  To meet the requirements for licensure/registration in 2018 the increased surety bond coverage must be met.

Renewal applicants that fail to deliver an Electronic Surety Bond as evidence of surety bond coverage in the requisite amount will be incomplete and subject to expiration.