The federal SAFE Act is causing many states to increase requirements or create mortgage broker bonds. Even though the majority of the collapse of the financial markets is behind us, SAFE is working to ensure history won’t repeat itself. Therefore, SAFE is focusing on mortgage broker bonds as a way to help protect the public. Under the new SAFE Act the mortgage broker bonds must include the activities of the mortgage loan originators. With the SAFE reevaluating the bond obligations it is expected that the underwriting requirements will also change. If the obligation is changed to cover the actions of a person then the underwriting requirements will become more difficult. The surety industry is suppose to underwrite to a zero loss ratio, which means we don’t play the law of large numbers as the rest of the insurance industry does.