30 day cancellation

[Numbers]

If a mortgage broker bond has a 30 day cancellation clause will the surety cancel at the expiration date or the 30 day mark?

[marietta68]

If a mortgage broker bond has a 30 day cancellation clause will the surety cancel at the expiration date or the 30 day mark?

The surety is obligated to follow the cancellation provisions, either in the bond form itself, or in the state statutes. Sureties must also allow three to five days for "mail time", meaning the effective date of the cancellation will be 33-35 days after the date of mailing. The majority of mortgage broker bonds are continuous until cancelled, and with few exceptions, don't actually have an "expiration" date.

[Surety Queen]

If a mortgage broker bond has a 30 day cancellation clause will the surety cancel at the expiration date or the 30 day mark?

If the renewal premium has not been received 30 days prior to the expiration date, then they will likely issue a cancellation notice. While most bonds are continuous, they still have a cancellation clause requiring Surety to provide the specified numer of days notice prior to cancelling. As an example, if your bond was effective on the 1st of July last year, then Surety will want the renewal premium by the 1st of June this year for the renewal period.