1. A. As required by § 6.2-1604 of the Code of Virginia, a surety bond shall be filed with the commissioner and continuously maintained thereafter in full force by each licensee. The minimum bond amount required for a mortgage broker shall be $25,000, and the minimum amount required for a mortgage lender or for a mortgage company with dual authority as both a mortgage lender and mortgage broker shall be $50,000. The bond amount shall be adjusted annually in accordance with the following scale based upon residential mortgage loans originated during the preceding calendar year:

   LOANS	BOND AMOUNT
   $0 - $5,000,000	$25,000
   $5,000,001 - $20,000,000	$50,000
   $20,000,001 - $50,000,000	$75,000
   $50,000,001 - $100,000,000	$100,000
   over $100,000,000	$150,000

2. B. If a person has been or is engaged in business as a mortgage lender or mortgage broker and has filed a bond with the commissioner, the bond shall be retained by the commissioner notwithstanding the occurrence of any of the following events:

   1. 1. The person's application for a license is withdrawn or denied;
   2. 2. The person's license is surrendered, suspended, or revoked; or
   3. 3. The person ceases engaging in business as a mortgage lender or mortgage broker.
3. C. As required by § 6.2-1606 of the Code of Virginia, a mortgage lender shall maintain at least $200,000 in funds available for the operation of its business. To comply with this requirement, a mortgage lender shall maintain documentation of one of the following: (i) ownership of funds on deposit in a bank or other depository institution, (ii) an established line of credit from a bank or other depository institution; or (iii) a combination of clauses (i) and (ii). Neither letters of credit nor lines of credit from sources other than a bank or other depository institution shall satisfy this requirement.

Statutory Authority

§§ 6.2-1613 and 12.1-13 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 33, Issue 18, eff. May 15, 2017.