According to Section 5 of Public Act 14-89, a “mortgage servicer” is any person who receives payments of principal and interest in connection with a first residential mortgage loan of a client, records such payments on the client’s books, and records and performs other administrative functions as may be necessary to properly carry out the mortgage holder’s obligations under the mortgage agreement. In order to be a licensed mortgage servicer in the State of Connecticut, the applicant must file a surety bond with the Commissioner as outlined in Public Act 14-89.
The required bond amount is $100,000 (plus $100,000 for each additional branch office).
The Connecticut Mortgage Servicer Bond ensures that the Principal will faithfully perform all written agreements with or for the benefit of their clients, truly and faithfully accounting for all funds received from the client in the Principal’s capacity as a mortgage servicer, and conducting such mortgage business consistent with the provisions of Sections 36a-715 to 36a-718 of the Connecticut General Statutes and Public Act 14-89. The bond also guarantees compensation for any persons injured by wrongdoing of the Principal.
The Connecticut Mortgage Servicer Bond is continuous in nature; therefore, it remains in full force and effect until cancelled. The surety may cancel the bond at any time with 30 days written notice to the Obligee prior to the effective cancellation date.
All fees are required by the obligee, not the Surety Company.