Raised Bill No. 187 - Consumer Credit

• Requires surety bond cancellations for mortgage lenders, brokers, debt negotiators, mortgage servicers and consumer collection agencies to be submitted electronically through the system, with 30 days' notice required before cancellation takes effect

• Establishes automatic suspension of licenses when surety bonds are cancelled, unless the licensee obtains bond reinstatement, a new bond, or ceases business before the cancellation date

• Revises procedures for licensees to change their legal names or addresses by requiring a bond rider to be filed directly with the commissioner at least 30 calendar days before the change takes effect

• Creates registration procedures for exempt mortgage servicers (licensed mortgage lenders acting as servicers) and requires them to maintain surety bonds, fidelity bonds and errors and omissions coverage

• Establishes cosigner release requirements for private student education loans, including limiting on-time payment requirements to 12 consecutive months and prohibiting restrictions on repeated applications, effective October 1, 2024