Bonding requirements

1. Residential mortgage loan brokers shall deliver a surety bond to the director prior to the issuance or renewal of a license: (1) The surety bond shall provide coverage in an amount as prescribed in subsection 2 of this section; (2) The surety bond shall be in a form as prescribed by the director; (3) Such bond shall be issued by a bonding or insurance company authorized to do business in Missouri and shall secure the faithful performance of the applicant, its employees or agents, including mortgage loan originators, in connection with the activities of originating, servicing, or acquiring mortgage loans; (4) The director may promulgate rules with respect to the requirements for such surety bonds as are necessary to accomplish the purposes of sections 443.701 to 443.893. 2. The penal sum of the surety bond shall be maintained in an amount that reflects the dollar amount of loans originated by the residential mortgage loan broker as determined by the director but in no case shall be less than fifty thousand dollars or more than one million dollars. 3. When an action is commenced on a licensee's bond, the director may require the filing of a new bond. 4. Immediately upon any recovery on the bond, the licensee shall file a new bond. 5. The surety bond is for the protection of borrowers and the director may make a claim on the bond on behalf of any borrower sustaining injury as the result of the actions of a licensee not in compliance with or in violation of any of the provisions of sections 443.701 to 443.893. 6. In lieu of presenting a claim directly, the director may release the bond to a borrower or the borrower's attorney to present a claim. 7. The surety may cancel or withdraw the bond under such terms as the director may prescribe but the bond shall cover any actions that occurred while the bond was in place for the applicable period of limitations under statute and so long as the bond is not exhausted by valid claims of borrowers.