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How Much Does a New York Mortgage License Bond Cost?
The cost of a New York mortgage license bond ranges from $100 to $5,000, depending on the required bond amount. Mortgage brokers need bond amounts between $10,000 and $100,000, while mortgage bankers require bonds from $50,000 to $500,000. Loan originators need bonds ranging from $10,000 to $100,000. Originating Entities may require bond amounts between $10,000 and $500,000.
Although the bonds can be high, you only pay a fraction of the amount as a premium. Typically, you can expect to pay between 1% and 3% of the total bond, depending on your credit score and the strength of your business.
Here’s a breakdown of the different bond amounts for individual brokers and how the premium cost can change based on your credit score.
|
Surety Bond Cost Based on Credit Score |
||||
|
Surety Bond Name |
Surety Bond Amount |
Over 700 |
Between 600 - 699 |
Below 599 |
|
New York Registered Mortgage Broker Bond |
$10,000 |
$100 - $300 |
$300 - $500 |
$500 - $1,000 |
|
New York Registered Mortgage Broker Bond |
$100,000 |
$1,000 - $3,000 |
$3,000 - $5,000 |
$5,000 - $10,000 |
|
New York Mortgage Banker Bond |
$50,000 |
$500 - $1,500 |
$1,500 - $2,500 |
$2,500 - $5,000 |
|
New York Mortgage Loan Originator Individual Bond |
$10,000 |
$500 - $1,500 |
$1,500 - $2,500 |
$2,500 - $5,000 |
|
New York Mortgage Loan Originator Individual Bond |
$100,000 |
$1,000 - $3,000 |
$3,000 - $5,000 |
$5,000 - $10,000 |
|
New York Mortgage Loan Originating Entity Bond |
$100,000 |
$1,000 - $3,000 |
$3,000 - $5,000 |
$5,000 - $10,000 |
|
New York Mortgage Loan Originating Entity Bond |
$500,000 |
$5,000 - $15,000 |
$15,000 - $25,000 |
$25,000 - $50,000 |
How to Get a New York Mortgage License Bond
1. Apply for a Bond Online
Our online application form makes it easy to get bonded as a mortgage broker, mortgage banker or loan originator. Once you determine your bond amount, just fill out some basic information about your business and we can start the bonding process.
We recently helped a mortgage loan originator in Albany get bonded. He had to get a higher bond amount from previous years because he was able to originate more loans. However, while his earnings were higher, it made the renewal process more of a headache. He appreciated our assistance and how we made the whole experience hassle-free.
2. Receive a Premium Quote
Typically, bond quotes can come in quickly. However, in some cases, a quote may take up to 24 or 48 hours to process. We always guaranteed the best bond rate, so it’s always worth the wait, no matter what.
3. Pay for Your Bond
Once you receive your quote, you can pay the bond immediately. After paying, we’ll email the bond to you. We can also mail a hard copy of the bond if necessary. Typically, mortgage broker bonds are valid for up to a year, but that can depend on several factors, such as when you renew your license.
Apply for a free no-obligations quote on your surety bond!
Mortgage License Bond Requirements in New York
The requirements for a mortgage license bond depends on the type of work. The authority that supervises is the The New York Department of Financial Services. The requirement for a mortgage broker is a $10,000 to $100,000 based upon a registrant's volume of business and any other relevant factors as determined by the superintendent. Mortgage bankers need a bond ranging from $50,000 to $500,000, also based on business volume and the superintendent's assessment.
Licensed mortgage loan originators must maintain a surety bond determined by the dollar volume of loans they originate ranging between $10,000 to $100,000, as outlined in the following chart:
|
New York Mortgage Loan Originator Bond |
|
|
Aggregate $ amount of NY loans originated |
Surety Bond Amount |
|
Less than $1,000,000 |
$10,000 |
|
$1,000,000 to $7,499,999 |
$15,000 |
|
$7,500,000 to $14,999,999 |
$25,000 |
|
$15,000,000 to $29,999,999 |
$50,000 |
|
$30,000,000 to $49,999,999 |
$75,000 |
|
$50,000,000+ |
$100,000 |
According to Section 420.15 of the Superintendent’s Regulations, an Originating Entity may secure a surety bond ranging from $100,000 to $500,000 to cover some or all of its employed or independent contractor mortgage loan originators:
|
New York Mortgage Loan Originating Entity Bond |
|
|
Number of Licensed MLOs |
Surety Bond Amount |
|
Less Than 10 |
$100,000 |
|
10-15 |
$150,000 |
|
16-24 |
$250,000 |
|
25+ |
$500,000 |
The surety bond certification must be submitted with the initial bond filing to the Department of Financial Services. The certification form(s) must include the names of individuals covered by the bond, their originating volume (calculated as specified above), the coverage amount, the NMLS Unique Identifier for each covered mortgage loan originator, the date each loan originator was licensed by the Department, and the date coverage began.
For questions about how to get a mortgage broker license, contact:
New York State Department of Financial Services
1 State Street
New York, NY 10004-1511
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Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!
Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!
