New York Mortgage Loan Servicer Bonds

If you want to obtain a New York mortgage loan servicer license, you will need to meet the $250,000 surety bond requirement. It guarantees you will follow applicable laws in the state, including the state Banking Law.

The licensing authority is the Department of Financial Services. However, you have to submit your application and documents via the Nationwide Multistate Licensing System & Registry (NMLS).

The required bond amount for New York mortgage loan servicers is $250,000. To get bonded, however, you only have to pay a bond premium. It represents a small percentage of the required amount. For applicants with stable finances, the rates are between 0.5% and 5%.

What factors shape your surety bond cost? The most important ones include your personal credit score, business finances, and fixed and liquid assets. Your surety needs to examine these indicators to assess the level of bonding risk. The stronger your overall profile is, the lower your bond cost would be.

It is more difficult to get bonded with bad credit, but it's possible with Lance Surety Bonds' Bad Credit Surety Bonds program. If you are facing issues such as a low credit score, tax liens, bankruptcies, or civil judgments, you can benefit from this option.

Since the bonding risk is higher, the bad credit premiums are in the range of 5% and 10%. Due to our partnerships with numerous A-rated, T-listed surety companies, however, we are able to offer you a top bonding option.

Need more information? Don't hesitate to consult our detailed How to Get Bonded guide.

Our bonding experts are here to help you. You can reach us at (877) 514-5146.

The purpose of your mortgage loan servicer bond is to protect the state and your customers against illegal activities on your side. If you fail to follow the New York Banking Law or other applicable rules, you can receive a bond claim.

Claimants can seek reimbursement up to the penal sum of your bond, which is $250,000 in this case. On proven cases, the compensation has to be paid to the harmed parties. Your surety may cover the costs at first, but you need to repay it soon after. This is set in the bond indemnity agreement. Thus, it is best to avoid claims, as they can lead to serious financial and reputational harm for your business.