Georgia State-Chartered Banks and Credit Unions Closure Procedures
In light of recent inquiries related to COVID-19, the Department would like to remind all Georgia State-Chartered Banks and Credit Unions of emergency closing notification procedures. Georgia Banks and Credit Unions Closure Procedures
Surety Bond Information
Licensees, registrants, and applicants for a mortgage broker/processor license must have and maintain a surety bond in a form and terms acceptable and payable to the Department in the amount of $150,000.
Licensees, registrants, and applicants for a mortgage lender license must have and maintain a surety bond in a form and terms acceptable and payable to the Department in the amount of $250,000.
Implementation of Law Changes in House Bill 143
House Bill 143 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 was enforced on December 31, 2017, which coincided with the deadline to convert company surety bonds to an electronic format through NMLS (see ESB information below).
All licensed and registered mortgage brokers and lenders must have converted their paper bonds AND provided an electronic surety bond rider through the NMLS by December 31, 2017.
Electronic Surety Bonds (ESB)
Electronic surety bonds (ESB) for mortgage company license/registration types were available in NMLS starting January 23, 2017.
New company license applications submitted after January 23, 2017 are required to meet all surety bond requirements by completing the electronic surety bond process. See the ESB Adoption Map and Table for more information.
What is a surety bond and why do I need to have one?
A surety bond is a three-party instrument between a surety (insurance company), the licensee, and the Department. The agreement binds the licensee to comply with the terms and conditions of the laws and regulations concerning the issuance of their license. If the licensee is unable to successfully meet those requirements, the surety assumes certain monetary obligations required for performance under that surety bond for the licensee, and ensures that the obligations are met. Such obligations may be those owed to qualifying consumers, other creditors, or the Department.
Can the Department return my bond?
The Department cannot return a bond to a licensee or its surety.
Can the Department release the Surety from liability?
The Department cannot execute a general release that discharges a surety from any past, present or future liability under a bond.