New York Licensed Mortgage Bankers Bond
What is a New York Licensed Mortgage Bankers Bond?
It is a license requirement that must be fulfilled by every mortgage banker in the State of New York.
The purpose of this bond is to guarantee the fulfillment of obligations stated in Article 12-D of the Banking Law of the State of New York.
This will be also be used by the Superintendent of Banks of the State of New York for the recovery of consumer fees or other charges determined by the Superintendent to be improperly charged or collected and to pay past due New York State Department of Financial Services examination costs and assessments, unpaid penalties, or other obligations of the licensed mortgage banker in the event of an insolvency, liquidation, bankruptcy, or revocation of license.
How much does a New York Licensed Mortgage Bankers Bond cost?
The bond premium will depend on the credit score of the mortgage banker and the bond amount set forth by the Superintendent of Banks of the State of New York.
Those who have excellent credit scores will pay as low as 1% of the bond amount.
The bond amount will be based on the mortgage banker’s volume of business and any other relevant factors.
$50,000 – minimum bond amount
$500,000 – maximum bond amount
The Superintendent of Banks of the State of New York my increase the bond amount of mortgage bankers who received bona fide consumer complaints of misconduct.
Once you have determined your bond amount, you can find out what your bond premium will be by claiming your FREE SURETY BOND QUOTE HERE!
How can I get a New York Licensed Mortgage Bankers Bond?
The first step is to apply for this bond which you may easily do so HERE!
One of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
The next step is underwriting. An underwriter will evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
The last step is signing the indemnity agreement. Once signed, your bond will be issued and sent to you.
How does a New York Licensed Mortgage Bankers Bond work?
This bond is a tripartite agreement among the Principal (mortgage banker), Obligee (Superintendent of Banks of the State of New York), and the Surety (surety bond company).
This bond is an assurance provided by the Surety regarding the faithful performance of the Principal. The Surety will also ensure that any valid claim made against this bond will be paid. If the Principal commits a misconduct and a claim arises because of such, the Surety will first perform an investigation to validate the claim.
If the claim is valid, the Surety will pay the Obligee. Under the indemnity agreement, the Principal must repay the Surety after the claim has been settled.