(A)
With respect to
a bond obtained by a registrant, or by a qualified exempt entity or loan
processing or underwriting company in the same manner as a registrant, the
following shall apply:
(1)
The surety bond required by section
1322.05 of the Revised Code
shall be on a form acceptable to the superintendent.
(2)
The surety bond
must be issued in the name of the registrant, qualified exempt entity, or loan
processing or underwriting company and list the main office of the registrant,
qualified exempt entity, or loan processing or underwriting company. If a trade
or fictitious name is used, the trade or fictitious name shall be included on
the bond.
(3)
One surety bond in the appropriate aggregate amount
shall be required to cover a registrant, qualified exempt entity, or loan
processing or underwriting company regardless of the number of registered or
exempted office locations. An endorsement rider may be used to increase or
decrease the amount of the bond whenever an office location is established or
closed.
(4)
Whenever the penal sum of the surety bond is reduced
below the required amount, the registrant, qualified exempt entity, or loan
processing or underwriting company and licensees employed by or associated with
them shall immediately cease originating residential mortgage loans until the
bond has been restored to the full required value. Failure to restore the bond
to the full required value within thirty days of the first date the penal sum
of the bond was reduced is grounds for a fine, suspension, refusal to renew or
revocation of the registrant's certificate of registration or a qualified
exempt entity's or loan processing or underwriting company's approved letter of
exemption.
(B)
No licensee shall perform the clerical or support
duties of a loan processor or underwriter as described in
12
U.S.C. 5102(4)(B), as in
effect on January 12, 2014, in this state as an employee of a loan processing
or underwriting company or as an independent contractor, unless either the
licensee, or the loan processing or underwriting company on the licensee's
behalf, has obtained and maintains in effect at all times a corporate surety
bond issued by a bonding company or insurance company authorized to do business
in this state.
(C)
With respect to an individual bond obtained by a
licensee employed by or associated with a qualified exempt entity, by a
licensee employed by a loan processing or underwriting company on a licensee's
behalf, or by a licensee acting as an independent contractor performing
clerical or support duties of a loan processor or underwriter as described in
12
U.S.C. 5102(4)(B), as in
effect on January 12, 2014, the following shall apply:
(1)
The surety bond
required by section 1322.05 of the Revised Code
shall be on a form acceptable to the superintendent;
(2)
The surety bond
must be issued in the name of the licensee and state the home address of the
licensee as listed in the licensee's NMLS account.
Replaces: 1301:8-7-14
