Posted by Ilene C. Seidel on 1/8/09 9:06am
Msg #273833

Maryland Closing Agents-very important

Alice in Hagerstown received an email from MLTA stating the commissioner is requesting before legislation an increase in our surety bonds from $100,000 to $250,000. If we don't all band together this can happen and probably put the annual premium out the roof and just unaffordable in the current environment. For those of you who want more info let me know I'll forward the email to you.

Reply by Yowheelz on 1/8/09 9:09am
Msg #273834

please email me the information you can pm me.
Thanks for the updates

Reply by Prosperity on 1/8/09 9:48am
Msg #273836

Oooh. Please send it to me as well. Thanks.

Reply by Les_CO on 1/8/09 10:10am
Msg #273838

Colorado use to require surety bonds for Notaries. They do not now. (However some moron in the State Legislator is trying to get it required again. Probably gets campaign contributions from insurance companies) Basically CO did a study, and found that the insurance and bonding companies collected millions in premiums, but paid out virtually nothing. They then deemed the bonds, although a total money maker for the bonding companies, unnecessary for the public good. Maybe you should look into this?

Reply by Prosperity on 1/8/09 11:03am
Msg #273841

The bond is actually a requirement for the TPL. We are one of those states that require the TPL in addition to the notary commission.

Reply by Les_CO on 1/8/09 11:51am
Msg #273844

Yes…. I understand that the bond mentioned is for Licensed Title Producers, not just Notaries. My point was (and I’m not sure on this) that if bonding/insurance companies collect premiums for ‘required’ bonds but pay out less that 2% (or some percentage) of those premiums…. that 1/ the cost of the premiums is far too expensive, and… 2/ the required bond does little for the ‘public good’, and is a hardship on those ‘forced’ to purchase it. You should check with the MD Insurance regulators, as well as your State Representatives. It could be that these ‘bonds’ are totally unnecessary (if no claims are made, or paid) and just a license to steal for the insurance companies, as was the case here in CO.

Reply by Alice/MD on 1/8/09 1:46pm
Msg #273858

Les makes a good point. It is going to be interesting to see what the reason is for this more than double increase. How many claims have they paid to justify this huge increase?

Reply by Ilene C. Seidel on 1/8/09 3:16pm
Msg #273874

I've heard from a local title company the commission thinks there are too many closing agents out here he's probably trying to bring the # down.

Reply by Lee/AR on 1/8/09 3:41pm
Msg #273876

Les makes a very good point, people!

Examine the reason; question the amount & the payouts. Don't just bend over & take it.
We, as a group, have 'complied' with far too much nonsense already. Yes, I know it's the TPL, etc. It's still could be, as Les put it--with good reason--a license to steal for the Ins. Co.