New Law Escrow Depositories
Act 166 (2013)
Please see Act 166 for the text of the new law.
- Updates the escrow depositories law to more realistically address the responsibilities and operations of escrow depositories as they conduct business today;
- Adjusts fees for escrow depositories reflecting the risk based approach of supervision, and additional regulation and monitoring required of DFI as a result of changes to the federal laws and increasing sophistication of the escrow depository industry.
Investigations and Violations
- Authorizes the Commissioner to investigate and conduct hearings regarding possible violations of Chapter 449, whether or not the investigation stems from information furnished by an escrow depository applicant.
- Requires that a licensee have notice and an opportunity to be heard before the Commissioner can impose an administrative fine for a violation of Chapter 449.
- Adds a special civil penalty of up to $10,000 if a violation is targeted at or injures an elder.
Fees changes/ additions to better cover DFI’s analysis, examination and processing costs
- License application $5,000;
- Branch office application or relocation $100
- Annual license renewal $2,000
- Branch office license initial issuance and annual renewal $100
- Reissuance of license for office business address change $50
- Transfer and change in control of a licensee $5,000
- Hourly examination fee $60
Changes security requirements to better protect the public given today’s larger, more complex escrow transactions
- Minimum net capital requirement $100,000
- Fidelity bond $100,000
- Errors and omissions insurance $250,000
Bond adjustments will be effective January 1, 2014, however, DFI will allow licensees to use their usual renewal date.