The New York Mortgage Bankers Bond is required by the Superintendent of Banks of the State of New York. Companies that engage in the business of making three or more mortgage loans in a calendar year or more than five loans in a two year period on 1-4 family owner- occupied residential property located in the State of New York. Making a mortgage loans means for compensation or gain either directly or indirectly, advancing funds, offering to advance funds, or making a commitment to advance funds to an applicant for a mortgage loan or a mortgagor as a mortgage loan.
New York Mortgage Bankers Bond amount is determined by the aggregate amount loans closed in the state. The required surety bond amount is as follows:
|Aggregate $ Amount of NY Loans Closed||Required Amount of Surety Bond|
|$200,000,000 – $299,999,999||$350,000|
|$100,000,000 – $199,999,999||$250,000|
|$30,000,000 – $99,999,999||$150,000|
|$10,000,000 – $29,999,999||$100,000|
|$0 – $9,999,999||$50,000|
In addition to the surety bond requirement, applicants must demonstrate and maintain a minimum net worth of $250,000, and an existing line of credit in the amount of not less than $1,000,000.00. This line of credit must be provided by an unaffiliated banking institution, insurance company or similar credit facility.
In most cases, for bond amounts up to $250,000, a completed application is all we will need to provide a quote. For bond amounts over $250,000, financial disclosure will be required by the surety. Surety Solutions Insurance Services, Inc., the company behind surety1.com, is licensed in all 50 states and has been providing New York mortgage industry bonds since 2003. Representing over a dozen surety companies, Surety1 can obtaint he bonds you need at the best possible price and terms. We offer and easy to navigate, secure, online application and are rated A+ by the Better Business Bureau.