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The New York Mortgage Loan Originator Bond is required by the State of New York, Banking Department, Superintendent of Financial Services. The bond is in place for any reimbursement of consumer fees or other charges determined by the Obligee to have been improperly charged or collected by the bondholder in violation of the business conduct and consumer protection laws and regulations.
How do I apply to become a Mortgage Loan Originator in New York?
A mortgage loan originator is an individual who for compensation or gain takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan. Applicants may submit their license application through the NMLS website. The following documents must be passed in order to be approved for the license:
- Proof of compliance with the pre-licensure education requirement
- Must pass the testing requirement
- Payment of all fees, including $30 for the initial processing fee, $370 for the application fee, $15 for the credit report, $36.25 for the FBI Criminal Background check
- Completed MU4
- Criminal background check
- Credit report
- Employment history
- Proof of identification
- Evidence to authorization to work in the U.S.
- Garnishment of Wages
What is the bond amount?
Licensed mortgage loan originators are required to maintain a surety bond based on the dollar volume of loans originated by the mortgage loan originator as determined by the following chart:
Individual bond amounts are as follows:
|Required Bond Amount||Aggregate Amount of NY Loans originated|
|$10,000||Less Than $1,000,000|
|$15,000||$1,000,000 to $7,499,000|
|$25,000||$7,500,000 to $14,999,999|
|$50,000||$15,000,000 to $29,999,999|
|$75,000||$30,000,000 to $49,999,999|
Note: Loan Originators that are not covered by an Originating Entity surety bond must maintain an individual surety bond.
If an Originating Entity maintains a bond covering some or all of its licensed mortgage loan originators, such bond shall be in an amount equal to the aggregate of the individual bonds required for the covered mortgage loan originators calculated as set forth above. However, the bond maintained by an Originating Entity to cover its mortgage loan originators is not required to be in excess of the amount outlined below or such other amount specified by the Superintendent pursuant to Section 420.15(c):
|Number of Individuals who are Required to be
Licensed as Mortgage Loan Originators
|Required Amount of Surety Bond|
|less than 10||$100,000|
|25 or more||$500,000|
How do I obtain a New York Mortgage Loan Originator Bond?
At Surety1.com we make it east to apply for your surety bond with our simple 3 step process.
- Complete our easy to navigate and secure online application.1
- Review your free, no obligation quote provided by one of our surety bond professional agents (usually within 1 business day). 2
- Sign some paperwork and make payment (all major credit cards accepted) .
Once these steps have been completed, your bond will be shipped to you for the required signature before it is turned onto the NY Department of Financial Services.
1 For an “Individual Mortgage Loan Originator” surety bond, the name of the principal insured on the bond must match exactly the full legal name of the applicant as listed on the MU4 form filed through NMLS.
2 Additional information may be required by the surety, depending on the aggregate bond amount. Generally, for bond amounts $100,00 and less, the online application is all the information required by the underwriters.
The surety bond is not required until the license application has been approved by the state.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Surety1.com is the premier online provider of surety bonds nationwide since 2003. We are also licensed in all 50 states and maintain an A+ rating by the Better Business Bureau.
Click Here to Visit our State by State Guide to Mortgage Industry Bonds
How to Get Your New York Mortgage Loan Originator Bond
- Complete an online application. It’s free and no-obligation.
- One of our surety experts will contact you with a firm quote and an agreement to sign.
- Provide payment and your signed agreement, and then you will receive your Surety Bond!
If you have any questions, please call us at 877-654-2327.
Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.