General Assembly Raised Bill No. 1257 proposes significant amendments to existing laws governing surety bonds, licensing, and operations of mortgage servicers, consumer collection agencies, and private education lenders. A key change is the requirement for surety companies to provide written notice of bond cancellation to both the principal and the commissioner electronically at least thirty days prior to cancellation, replacing the previous certified mail requirement. The bill also clarifies that licenses for mortgage lenders, mortgage correspondents, and mortgage brokers will be automatically suspended upon bond cancellation unless specific conditions, such as submitting a reinstatement letter or a new bond, are met. Additionally, the bill introduces consistent language across various sections to streamline the bond cancellation process and enhance communication among surety companies, licensees, and regulatory authorities.

The legislation further updates definitions and requirements related to private education loans, including the registration process for lenders and servicers, and mandates transparency in shared appreciation agreements. It prohibits lenders from imposing restrictions that could hinder cosigner release eligibility and requires detailed disclosures to borrowers. The bill also emphasizes the qualifications necessary for mortgage servicer licenses and establishes compliance policies for mortgage servicers. Overall, Raised Bill No. 1257 aims to enhance consumer protection, regulatory clarity, and accountability within the financial services sector, with several provisions set to take effect on October 1, 2025.

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