WBK Industry News - State Regulatory Developments

Arkansas and Connecticut Begin Receiving Electronic Surety Bonds

On October 1, 2021, the Arkansas Securities Department began receiving new and converted Electronic Surety Bonds (ESBs) through NMLS for certain state licenses.  Similarly, the Connecticut Department of Banking will start accepting new and converted ESBs through NMLS for its state licenses/registrations beginning November 1, 2021.  Both states have mandatory conversion deadlines in 2022.

In Arkansas, ESBs for the following licenses are available in NMLS as of October 1, 2021: Mortgage Broker License, Mortgage Banker License; Mortgage Servicer License; Combination Mortgage Broker, Banker, and Servicer License; and Money Transmitter License.  Companies holding any of these licenses are required to convert their existing surety bond to an ESB by April 30, 2022.

And in Connecticut, ESBs for the following licenses/registration will be available in NMLS starting November 1, 2021: Consumer Collection Agency License; Debt Adjuster For-Profit and Non-Profit Licenses; Debt Negotiation License (both Unsecured Debt Bond and MLO Sponsor Bond); Exempt Company Registration; Mortgage Servicer License; Mortgage Lender License; Mortgage Correspondent License; Mortgage Broker License; and Money Transmission License.  Companies holding any of these licenses/registrations are required to convert their existing surety bond to an ESB by December 31, 2022.