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How much will my New York mortgage loan originator bond cost?
The cost of a New York mortgage loan originator bond starts at 1-3% of the total bond amount for highly qualified applicants. However, the exact cost depends on a review of the application by an underwriter. Factors taken into consideration when determining a quote include the applicant’s credit, experience in the industry and the aggregate amount of loans originated in New York.
Why is a mortgage loan originator bond required?
New York mortgage loan originator bonds assure that if consumers are wronged in the process of a mortgage transaction, they have a safeguard from unprofessional acts of business and can be compensated for any unjustified financial losses they may face.
If the principal violates the terms of his or her bond agreement and a consumer is harmed as a result, the surety will pay for all damages up to the full bond amount; however, the principal is responsible for reimbursing the surety for any money it pays out to consumers in a timely manner.
New York mortgage broker surety bonds will remain continuous unless otherwise canceled by the surety or the principal. If either party decides to terminate the bond early, a written notice is required to be given to the obligee prior to cancellation. All mortgage loan originators must post a surety bond of the correct amount that covers all employed mortgage loan originators pursuant to the state laws and regulations.
How to become a mortgage loan originator in New York
It is against the law to conduct business as a mortgage loan originator or a mortgage broker without being licensed to do so in New York. To obtain a mortgage loan originator license, the applicant must do the following:
- Post a surety bond
- Submit fingerprints and satisfactory background check through NMLS
- Furnish a pre-license educational certification through NMLS
- Receive a score of 75% on the SAFE Mortgage Loan Originator Test
- Furnish proof of financial responsibility, character and general fitness, including a satisfactory credit report
Mortgage Industry Surety Bonds Available Nationwide
Many states have their own surety bond requirements for mortgage professionals. This means mortgage professionals who work in several states often have multiple surety bonds. Use the map below to learn more about mortgage bonds in other states.