Posted by Art_MD on 2/12/09 6:04am
Msg #277239

$250,000 surety bond - MD

FYI - as a result of some shady people in the loan buiness, the state insurance commissioner has proposed a bill raising the surety bond requirement for a Title Producer to $250,000 from $100,000. Cost - probably $500+ additional per year.

Art

Reply by Lee/AR on 2/12/09 6:19am
Msg #277240

Ouch...bad timing, MD. MD TPLs--start lobbying! n/m

Reply by Les_CO on 2/12/09 7:08am
Msg #277241

Did the bonding companies in MD actually pay any claims last year, or is this guy just trying to get his name in the paper? We in CO use to have ‘notary bonds’ until it was discovered the bonding companies had virtually paid no claims in years…they just kept the premiums. And because it was ‘mandatory’ they felt no need to reduce the premiums charged. I suggest you MD with TPL’s get together and find out if your ‘required’ bond, and this new proposed increase is actually in "The Public Interest” or if it’s just a scam, that gets some insurance/bonding companies big bucks, and someone else ‘campaigned contributions’?

Reply by Ilene C. Seidel on 2/12/09 9:12am
Msg #277259

Les this is not a notary bond but a bond insuring title insurance producers. This is a real big problem.

Reply by Les_CO on 2/12/09 10:02am
Msg #277267

I understand the difference between a Notary and a Licensed Title Producer. Usually if there is a State requirement, as in Notary Bonds, in some States, and a LTP Bond in MD (probably in addition to a Notary Bond?) there needs to be a ‘reason’ (justification) for said requirement. As in, ‘for the public good’ or for ‘protection of the public’. You as (LTP’s) and MD residents are ‘the public’ too. If you collectively ….. say, 3000, have to pay to ‘someone’ say $750,000..to a $1,000,000 in premiums, and that ‘someone’ (ins/bonding companies) pay out…NOTHING….How is that in the “Public Good”? You guys have many votes, the MD Insurance Commissar, has only one…(But he may have friends?)
And I have a question for you MD NSA’s. I recently did a signing for a MD Title Co. and their Title charges were shocking. Over $1700!! This was not for title insurance (another $1100) just for their fees. Is this the norm? Can they do this because of the LTP requirements?

Reply by hp/MD on 2/12/09 7:18am
Msg #277243

I am willing to call my Rep in the assembly. If passed, it will drive some of the part timers out of business. That is unfortunate.

Reply by Alice/MD on 2/12/09 8:53am
Msg #277253

I am in favor of lobbying the Senate. This is not going to stop those notaries who are closing mortgages without a Title Producer License. There is no enforcement. I received a call the other day and the SS told me that the title company wanted him to find a notary without a Title Producer License so they would not have to pay more. Most companies are looking for closer to work for $65 edocs.

Reply by Ilene C. Seidel on 2/12/09 9:19am
Msg #277260

Does anyone know when we need to go to Annapolis to lobby???
Alice call me or pm me

Reply by MW/VA on 2/12/09 9:54am
Msg #277266

I know how many feel about the XYZ organization, but this is one area they are usually heavily involved with--state lobbying. You might want to check with them.