SB 361 Summary

• Requires mortgage loan originators to obtain and maintain annual licenses under section 36a-489 and register with the system, with individuals unable to act as originators for more than one person simultaneously.

• Allows persons exempt from licensing to register as exempt registrants on the system to sponsor mortgage loan originators and satisfy bonding requirements without affecting their exempt status.

• Establishes surety bond requirements effective July 31, 2010, with penal sums of $50,000-$150,000 depending on aggregate annual loan origination amounts, covering both lenders/brokers and their sponsored loan originators.

• Requires mortgage lenders, correspondent lenders, brokers, and loan originators to complete at least 20 hours of prelicensing education and pass a written test (75% passing score), with qualified individuals and branch managers completing requirements by April 1, 2010.

• Modifies prelicensing and continuing education requirements (8 hours annually) to include federal law, ethics, fraud prevention, consumer protection, fair lending, and nontraditional mortgage product training.