§ 11-619. Surety bond.

   (a) In general. -- Each mortgage loan originator shall be covered by a surety bond in accordance with this section.

(b) Coverage of employees. --

   (1) A mortgage loan originator who is an employee of a person subject to licensure under Subtitle 5 of this title may use the surety bond of that person to meet the mortgage loan originator's surety bond requirement.

   (2) A mortgage loan originator who is an employee of a person exempt from licensure under Subtitle 5 of this title may use a surety bond of the person to meet the mortgage loan originator's surety bond requirement, provided the surety bond meets the requirements, based on mortgage loan volume, under § 11-508 of this title.

(c) Affiliated insurance producer-mortgage loan originators. -- A licensee who is an affiliated insurance producer-mortgage loan originator shall be deemed in compliance with this section if the licensee:

   (1) Holds a surety bond that would satisfy the surety bond requirements under § 11-508 of this title if the affiliated insurance producer-mortgage loan originator were a licensee under Subtitle 5 of this title; or

   (2) Is covered under a blanket surety bond held by the financial institution or mortgage lender licensee identified in § 11-603.1(a)(3) of this subtitle if the blanket surety bond:

      (i) Covers all affiliated insurance producer-mortgage loan originators; and

      (ii) Is in the amount of $ 1,000,000 or another amount as required by the Commissioner by regulation.

HISTORY: 2009, ch. 4.