Monday, April 24, 2006 - Federal Agencies Release Report on Improving Privacy Notices

Responding to survey results that indicated many consumers do not read or understand the privacy notices required by the regulations issued in 2000 under the Gramm-Leach-Bliley Act, the Agencies conducted a year-long study of alternatives to the current privacy disclosures. The initial findings of the study have resulted in the development of prototype forms intended to better explain a consumer’s privacy rights. The prototypes utilize tables to organize and simplify the information for consumers.

The second phase of the study will be conducted with a larger group of consumers on a nationwide scale. The Agencies will consider action on revising the privacy disclosure requirements once the second stage of the research is completed.

Tuesday, April 11, 2006 - $25,000 Net Worth vs $50,000 Surety Bond

What does “exempt assets” refer to?  It means exempt in bankruptcy.  In Texas, if you elect to take the State bankruptcy exemptions, these items are exempt meaning you won’t lose them. It wouldn’t be right to take away a guy’s horse or mule just cause he’s down on his luck.

So what is left to qualify for the $25,000 net worth requirement?  Certainly cash, stocks and bonds, unlisted securities or investments and other real estate owned.

Short of those qualifying assets, many renewing and pre-license Mortgage Brokers are going after the $50,000 security bond instead.

The surety bond is secured at time of your Mortgage Broker application or renewal and must remain in effect during your two year license period. In other words, you don’t just get it and then drop it.

Not all companies offer surety bonds nor are they familiar with state licensing requirements. At Alliance Academy we don’t endorse any company’s product or service nor do we allow anyone pitching their company in our classes.

The exception to that rule is when we have testimonials from reliable sources who used that company and it was reported to be a good experience for them. 

It has been verified to us by reliable sources that two surety companies do a good job at reasonable costs.  One is Scott Insurance, Joanna Carson or Darlene Evans at 1-800-365-0101 and the other is Surety Solutions, Corban Evans at 1-503-488-5990.  Both companies are knowledgeable about state licensing requirements.