Who must the surety bond be payable to?

The surety bond must be payable to the Commissioner because the bond serves as a financial assurance that the licensed mortgage lender or broker will comply with California's laws and regulations governing mortgage lending. The Commissioner oversees the licensing and regulation of mortgage lenders and brokers, ensuring they adhere to the statutes designed to protect consumers and maintain the integrity of the financial system.

When a surety bond is in place, it provides a safety net for potential claims that may arise due to violations of law or commission of acts deemed unfair or deceptive. The Commissioner is the entity responsible for enforcing compliance, making it appropriate for the bond to be payable to them. This setup ensures that there are resources available to compensate any affected parties in case of non-compliance, fostering accountability within the mortgage lending industry.