To Whom It May Concern:
This letter is to inform you that the Division of Banks (the "Division") has proposed a sample Mortgage Lender Bond Form and Mortgage Broker Bond Form in order to facilitate the implementation of the provisions of Regulatory Bulletin 5.2-101 which provides guidelines relative to the establishment and maintenance of the corporate surety bond by licensed mortgage lenders and mortgage brokers. Amendments to 209 CMR 42.03(2)(a)(2) and 209 CMR 42.06(2)(a)(2) require that a new applicant for a mortgage lender and/or mortgage broker license, filing such application after September 7, 2007, must submit an executed corporate surety bond with the license application. Applicants who had a license application pending with the Division prior to September 7 th, as well as any entity or individual licensed under General Laws chapter 255E, section 2 as of September 7 th, will be required to demonstrate compliance with the amendments to 209 CMR 42.03 and 209 CMR 42.06 by December 31, 2008.
Since the amended regulations went into effect, the Division has received many additional comments from license applicants seeking clarification of the required terms of the surety bond as well as requests that the Division adopt and implement a sample surety bond form for licensed mortgage lenders and mortgage brokers. The Division has also been contacted directly by several of the surety companies to seek such clarification on the applicants' behalf.
In order to assist in the implementation of the surety bond requirement for licensed mortgage lenders and mortgage brokers, the Division provides this opportunity to comment on the enclosed mortgage lender bond form and mortgage broker bond form in advance of their adoption by the Division. The proposed bond forms set forth guidelines relative to the necessary terms and provisions which must be contained in the corporate surety bond and can be found on the Division's web site at www.mass.gov/dob under 'News and Updates' as well as 'Legal Resources.'
The Division is pleased to accept comments on the proposed mortgage lender and mortgage broker bond forms from interested parties which should be submitted by January 11, 2008 via e-mail to email@example.com or by mail addressed to Steven L. Antonakes, Commissioner of Banks, One South Station, 3 rd Floor, Boston, MA 02110.
Very truly yours,
Steven L. Antonakes
Commissioner of Banks