Cal. Code Regs. tit. 10 § 1950.205.1

Current through Register 2024 Notice Reg. No. 25, June 21, 2024

Section 1950.205.1 - Surety Bond

Every licensee shall maintain a surety bond in accordance with Section 50205 of the Financial Code as follows:

(a) A residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer that does not employ one or more mortgage loan originators shall post a surety bond in the amount of $50,000. The amount may be increased by order of the Commissioner upon a determination by the Commissioner that the licensee is not in compliance with any law, rule, or order.

(b) A residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer that employs one or more mortgage loan originators shall post a surety bond based on the dollar amount of residential mortgage loans originated or serviced, or both, by that licensee and its mortgage loan originator employees in the preceding year, as follows:

	Aggregate Loans	Bond Amount
	0 - $50,000,000	$ 50,000
	$50,000,001 - $500,000,000	$100,000
	Over $500,000,001	$200,000

(c) A residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer applicant without a prior year operating history shall make a good faith estimate of the aggregate amount of loans anticipated to be originated in the upcoming year to determine the amount of the surety bond.

Cal. Code Regs. Tit. 10, § 1950.205.1

1. New section filed 4-1-2010 as an emergency; operative 7-31-2010 (Register 2010, No. 14). A Certificate of Compliance must be transmitted to OAL by 9-28-2010 or emergency language will be repealed by operation of law on the following day.
2. Editorial correction of HISTORY 1 (Register 2010, No. 40).
3. New section refiled 9-28-2010 as an emergency, including repealer of subsection (d); operative 9-28-2010 (Register 2010, No. 40). A Certificate of Compliance must be transmitted to OAL by 12-27-2010 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 12-23-2010 as an emergency; operative 12-23-2010 (Register 2010, No. 52). A Certificate of Compliance must be transmitted to OAL by 3-23-2011 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 12-23-2010 order transmitted to OAL 3-14-2011 and filed 4-25-2011 (Register 2011, No. 17).

Note: Authority cited: Section 50304, Financial Code. Reference: Section 50205, Financial Code.

1. New section filed 4-1-2010 as an emergency; operative 7-31-2010 (Register 2010, No. 14). A Certificate of Compliance must be transmitted to OAL by 9-28-2010 or emergency language will be repealed by operation of law on the following day.
2. Editorial correction of History 1 (Register 2010, No. 40).
3. New section refiled 9-28-2010 as an emergency, including repealer of subsection (d); operative 9-28-2010 (Register 2010, No. 40). A Certificate of Compliance must be transmitted to OAL by 12-27-2010 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 12-23-2010 as an emergency; operative 12-23-2010 (Register 2010, No. 52). A Certificate of Compliance must be transmitted to OAL by 3-23-2011 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 12-23-2010 order transmitted to OAL 3-14-2011 and filed 4-25-2011 (Register 2011, No. 17).