R343-5-3. Business Entity Surety Bond Requirements

(1) This section does not require business entities to be licensed or bonded, but qualified business entities may elect to provide bond coverage on behalf of mortgage loan originators working exclusively for the entity instead of the individual originator providing a separate surety bond. To be eligible for this option:

(a) A business entity must file an acceptable notification or register with the department in accordance with Chapter 70C, Utah Consumer Credit Code; Chapter 70D, Financial Institution Mortgage Financing Regulation Act; or, other Utah statutes or rules administered by the department, and

(b) the bond must cover the activities of the licensed mortgage loan originator.

(2) The annual residential mortgage loan origination volume for the business entity is the basis for determining an entity's required bond amount. Annual origination volume is the sum of the amounts of all Utah loans the entity originated, arranged, booked, brokered, funded, made, or otherwise included in the entity's loan production volume during the prior calendar year.

(3) If the annual origination volume for the business entity was:

(a) up to $10 million, the required bond amount is $25,000; or

(b) $10 to $30 million, the required bond amount is $50,000; or

(c) over $30 million, the required bond amount is $100,000.