10 Va. Admin. Code § 5-160-15
Current through Register Vol. 41, No. 6, November 4, 2024
Section 10VAC5-160-15 - Surety bond; required fundsA. As required by § 6.2-1604 of the Code of Virginia, a surety bond shall be filed with the commissioner and continuously maintained thereafter in full force by each licensee. The minimum bond amount required for a mortgage broker shall be $25,000, and the minimum amount required for a mortgage lender or for a mortgage company with dual authority as both a mortgage lender and mortgage broker shall be $50,000. The bond amount shall be adjusted annually in accordance with the following scale based upon residential mortgage loans originated 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 |
B. If a person has been or is engaged in business as a mortgage lender or mortgage broker and has filed a bond with the commissioner, the bond shall be retained by the commissioner notwithstanding the occurrence of any of the following events:1. The person's application for a license is withdrawn or denied;2. The person's license is surrendered, suspended, or revoked; or3. The person ceases engaging in business as a mortgage lender or mortgage broker.C. As required by § 6.2-1606 of the Code of Virginia, a mortgage lender shall maintain at least $200,000 in funds available for the operation of its business. To comply with this requirement, a mortgage lender shall maintain documentation of one of the following: (i) ownership of funds on deposit in a bank or other depository institution, (ii) an established line of credit from a bank or other depository institution; or (iii) a combination of clauses (i) and (ii). Neither letters of credit nor lines of credit from sources other than a bank or other depository institution shall satisfy this requirement.10 Va. Admin. Code § 5-160-15
Derived From, Virginia Register Volume 33, Issue 18, eff. 5/15/2017.Statutory Authority: §§ 6.2-1613 and 12.1-13 of the Code of Virginia (10VAC5-160-10 through 10VAC5-160-90 ).