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.
  • ŸRequires 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.
  • ŸAdds 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

ŸChanges 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.