"State punishes Springs mortgage broker in fraud case"

[Surety Insider]

Toll said Cortez compounded his problems by letting his surety bond lapse in January 2008, meaning there is no insurance to cover him if victims decided to sue. Cortez called the lapse an oversight, as he was selling Ascend and going to work for Evergreen Home Loans.

"Because he had no surety bond, the victims have no recourse," Toll said.
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This article gives examples of what is covered and why. Read it here.

[SuretyBondAddict]

This is why surety bonds are so important. Any consumer should check with their state to be sure their Mortgage Broker is bonded before they go to them with their business.