What is a New York Mortgage Loan Originator Bond?
Get this licensure requirement immediately!
Those who are applying for an individual mortgage loan originator or a mortgage loan originating entity license must submit a surety bond with a sufficient amount required by the Superintendent of Financial Services of the State of New York.
Individual MLOs who are employed by a mortgage loan originating entity may use the latter’s bond as a requirement for the license so long as the surety bond provides coverage to each mortgage loan originator employed.
The licensed MLO’s lawful fulfillment of duties is one of the reasons for the surety bond requirement. The surety bond will also serve as a financial protection tool in case the mortgage loan originator defaults on its contractual obligation. The person who has been harmed by such misconduct will be entitled to compensation through the surety bond.
What is the Mortgage Loan Originator Bond amount?
The bond amount will depend on the mortgage loan originator’s volume of loans originated in the previous calendar year.
BOND AMOUNT AGGREGATE AMOUNT OF NEW YORK LOANS ORIGINATED
$10,000 Less than $1,000,000
$15,000 $1,000,000 to $7,499,999
$25,000 $7,500,000 to $14,999,999
$50,000 $15,000,000 to $29,999,9999
$75,000 $30,000,000 to $49,999,999
Mortgage Loan Originating Entity Bond Covering Its Employed MLOs
BOND AMOUNT NUMBER OF MLOs EMPLOYED
$100,000 Less than 10
$150,000 10 – 15
$250,000 16 – 24
$500,000 More than 25
Those who have an excellent credit score will be able to pay as little as 1% of the bond amount!
How can I get a Mortgage Loan Originator Bond?
We have made the surety bond procedure easier for you! Just follow these simple steps:
STEP 1: You must first apply for this type of surety bond. If you are ready to do that now, you may APPLY HERE!
Once we have received your application, we will immediately start the bonding process. We will inform you about the important documents that you need to submit for the next step, which is the underwriting process.
STEP 2: An underwriter will take a thorough look at the following:
- Your financial strength
- Your job performance history
- Your credit score
STEP 3: After the underwriting process has been fulfilled, we will issue your surety bond and send it to you immediately!
What are the surety bond conditions?
- The surety who will be issuing the surety bond should be authorized by the New York State Department of Financial Services
- The Superintendent of Financial Services of the State of New York should be named as the Obligee
- The mortgage loan originator should obey the provisions of Article 12-E of the Banking Law of the State of New York, as well as Part 420 of the Superintendent’s Regulations
- If the mortgage loan originator violates any of the provisions, the aggrieved party will be eligible to file a claim against the surety bond
Get your bond fast! APPLY NOW!