According to Connecticut General Statute 36a-485 (2012), a “mortgage correspondent lender” is a person engaged in the business of making residential mortgage loans in such person’s own name. The loans are not held by such person for more than 90 days and are funded by another person through a warehouse agreement, table funding agreement, or some similar agreement. In order to be a licensed as a Mortgage Correspondent Lender in the State of Connecticut, the applicant must file a surety bond with the Connecticut Commissioner of Banking.
The Connecticut Mortgage Correspondent Lender Bond is required to be in the sum of $100,000.
The Connecticut Mortgage Correspondent Lender Bond ensures that the Principal will faithfully conduct business with or for the benefit of borrowers and prospective borrowers, truly and faithfully account for all written agreements or commitments for the benefit of borrowers, and comply with Sections 36a-485 to 36a498f and 36a-534a and 36a-534b of the Connecticut General Statutes. The bond also protects borrowers and prospective borrowers who may be damaged by wrongdoing of the Principal.
The nature of the Connecticut Mortgage Correspondent Lender Bond is continuous; therefore, it remains in full force and effect unless cancelled. The bond may be cancelled at any time by the Surety with written notice 30 days prior to the date of cancellation.
All fees are required by the obligee, not the Surety Company.