HB 1884 Summary

• Establishes licensing requirements for settlement agents and settlement agencies handling escrow, closing, and settlement services related to real estate transactions in Oklahoma

• Requires settlement agencies to obtain errors and omissions insurance ($250,000 per claim/$500,000 aggregate) and blanket fidelity bonds ($100,000 minimum) to protect against employee dishonesty and embezzlement

• Mandates that all settlement funds be deposited into escrow accounts at financial institutions no later than the next business day and requires annual independent audits of escrow accounts

• Grants the Insurance Commissioner authority to suspend, revoke, or deny licenses for violations including fraud, embezzlement, failure to comply with bonding requirements, and other misconduct; allows civil penalties up to $1,000 per occurrence

• Requires settlement agents to complete continuing education programs (up to 8 hours annually) established by the Insurance Commissioner; exempts agents with 20+ years of experience and federal/state-chartered banks currently providing these services