How Much Do New York Mortgage Broker and Banker Bonds Cost?
Mortgage broker bond requirements in New York depend on the broker’s annual application volume. These bonds are subject to underwriting review, but applicants with strong credit often qualify for rates as low as 1% of the bond amount.
Each mortgage banker licensed in New York must purchase a $50,000 surety bond. Premium rates start at 3% — or $1500 — and vary depending on credit score. Use the table below to find the bond you need and get a free quote:
SuretyBonds.com also offers New York mortgage loan originator bonds.
How to Get a New York Mortgage Broker or Banker Bond
With SuretyBonds.com, you can apply for your New York mortgage broker or banker bond online 24/7. We’ll provide a free quote within one business day. You can purchase through our secure, online portal at any time.
After processing your order, we’ll mail your original bond form which you must sign and submit to the address below:
New York State Department of Financial Services
Attn: Mortgage Banking - Application Unit
One State Street
New York, NY 10004-1511
(800) 342-3736
If you work as a mortgage professional in several states, we offer mortgage industry license bonds nationwide.
What Is a New York Mortgage Broker/Banker Bond?
New York mortgage broker and mortgage banker bonds ensure that wronged mortgagees have a means of compensation for financial losses. Unethical acts covered by these bonds include the following:
- Defrauding or misleading borrowers and lenders
- Obtaining property by fraud or misrepresentation
- Using “bait and switch” advertising
- Collecting or charging any prohibited fees
How Do New York Mortgage Broker/Banker Bonds Work?
If the bonded principal creates unjust financial harm for a consumer, the surety will cover damages up to the full bond amount. Then, the principal must reimburse the surety.
These bonds remain active unless canceled by the surety or the principal. If either party decides to terminate the bond early, they must provide 30-days’ written notice to the New York Superintendent of Financial Services.
How to Become a Licensed Mortgage Broker in New York
To become licensed as a mortgage broker with the New York Department of Financial Services, follow these four steps:
- Purchase and file a surety bond
- Submit fingerprints and a background check through NMLS
- Receive a passing score on the national and state mortgage tests
- Furnish proof of financial responsibility, character and general fitness, including a satisfactory credit report
View the NMLS NY Mortgage Loan Broker License New Application Checklist for detailed fee information and submission instructions.
How to Become a Licensed Mortgage Banker in New York
Mortgage bankers that engage in mortgage lending and loan brokering in New York must apply for a license through the NMLS. Prospective bankers must meet the licensing prerequisites below:
- File a surety bond
- Have a network of $250,000
- Have a line of credit for $1,000,000
- Possess 5+ years of industry experience
- Submit a credit check
After meeting these requirements, use the NMLS NY Mortgage Loan Banker License New Application Checklist to complete the rest of the application process.
