What is a New York Mortgage Loan Servicer Bond?
Get registered through this surety bond!
Before mortgage loan servicers (MLS) can engage in the business of servicing mortgage loans, they must first secure a surety bond as part of the registration requirement.
The Superintendent of Financial Services of the State of New York requires mortgage loan servicers to become registered before performing their lawful duties. As part of the registration requirement, the MLS must file two (2) surety bonds: a corporate surety bond and a fidelity bond and E&O coverage.
The corporate surety bond will serve as a guarantee that the following will be reimbursed in the event of insolvency, liquidation, bankruptcy, or the revocation of the MLS’ registration:
- Any consumer fees or non-disbursed consumer payments that were incorrectly collected
- Pay past-due Banking Department examination costs and assessments
- Unpaid penalties
- Other obligations of the registered mortgage loan servicer
The Fidelity Bond will cover the losses in the event of fraud, embezzlement, misplacement, forgery, and other similar events.
This important requirement is in accordance with Section 418.12(b) and (c) of Part 418 of the Superintendent’s Regulations.
What is the Mortgage Loan Servicer Bond amount?
$250,000 – the minimum bond amount for a corporate surety bond
Fidelity Bond and E&O Coverage Aggregate Amount of
Amount New York Loans Serviced
$300,000 $100,000,000 or less
plus .15% of the next $500,000,000
plus .125% of the next $400,000,000
plus .100% of the amount over $1 billion
If you have an excellent credit score, you will be eligible to pay for a low bond premium or just 1% of the bond amount!
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a Mortgage Loan Servicer Bond?
SEND US A BOND APPLICATION – We begin the bonding process with an application. You may send your application for this bond HERE!
UNDERWRITING – Once we have received your application, an underwriter will ask you to submit the following important requirements:
- Proof of your financial capability
- Your business’ history
- Your credit score
To avoid any delay, make sure that your requirements are complete before submitting them.
ISSUANCE – As soon as the underwriter has completed the necessary in-depth check, we will immediately issue the surety bond and send it to you!
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 MLS should obey the provisions of Part 418 of the Superintendent’s Regulations
- If the MLS violates any of the provisions, the aggrieved party will be eligible to file a claim against the surety bond
- The Superintendent of Financial Services of the State of New York may increase the bond amount as deemed necessary
Get your bond fast! APPLY NOW!