Under PA law, what is the consequence if a surety company that issued a mortgage company's bond becomes insolvent?
Correct Answer
B) The licensee must obtain a replacement bond from a solvent surety within a prescribed timeframe
If the surety company becomes insolvent, the licensee must obtain a replacement surety bond from a solvent, authorized surety company within the timeframe prescribed by the Department to maintain licensure.
Why This Is the Correct Answer
If the surety company becomes insolvent, the licensee must obtain a replacement surety bond from a solvent, authorized surety company within the timeframe prescribed by the Department to maintain licensure.
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Under the Illinois Residential Mortgage License Act, a mortgage lender is distinguished from a mortgage broker primarily because the lender:
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