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New York Mortgage Loan Originator Broker, Banker, and Servicer Bonds


New York Mortgage Broker, Originator or Banker Bond Information

The Banking Law of the State of New York (Article 12-D) requires all registered mortgage brokers (“principals”) to furnish a $10,000 surety bond. Mortgage bankers must furnish a $50,000 bond and mortgage loan servicers must furnish a $250,000 bond.

Mortgage Loan Originators (MLOs) must speak to their sponsoring entity to determine whether the company will be submitting an Originating Entity Surety Bond on behalf of the MLO. MLOs who will not be covered by an Originating Entity surety bond must submit an Individual Mortgage Loan Originator surety bond. These bond amounts vary from $10,000 to $100,000 based on New York loan volume. Please confirm amount required with the state prior to requesting a quote.

How Much Does a Mortgage Bond Cost in New York?

Most Common Bonds

Mortgage Loan Originator Bond

Bonds up to $25,000

1-Year Bond Starts at $100.00
0.75% of the Bond Amount

Mortgage Banker Bond

Bonds up to $25,000

1-Year Bond Starts at $100.00
0.75% of the Bond Amount

Residential Mortgage Broker Bond

$10,000 Bond

1-Year Bond

Additional Bonds

Mortgage Loan Servicer Bond

$250,000 Bond

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What does a Mortgage Bond Protect Against?

Article 12-D of the Banking Law of the State of New York requires all registered mortgage professionals to furnish surety bonds in an amount or coverage based on the mortgage volume of business, as set forth in Section 410.14 of Part 410 of the Superintendent’s Regulations. The purpose of the surety bond is for the reimbursement of consumer fees or other charges determined by the Superintendent to be improperly charged or collected by the mortgage professional and to pay past due amounts for examination costs and assessments, unpaid penalties, or other obligations of the principal in the event of the insolvency, liquidation or bankruptcy.

Getting Your New York Business License or Registration

The New York State Department of Financial Services accepts new Mortgage professional applications through the Nationwide Mortgage Licensing System (NMLS). New applications for licensure must be submitted through the online NMLS application process. No application shall be deemed to be complete until all required information, documents, and fees have been received. Incomplete applications will receive written notification with the items that must are required for the Department to continue the application review process and applicants will then have 30 days to submit missing documents before the application is withdrawn. If an application is withdrawn, applicant must repay applicable fees and resubmit all documentation to the Department to restart the process.

To implement the provisions of the Secure and Fair Enforcement Mortgage Licensing Act (SAFE Act), the Department requires:

  • Submission of an application through the Nationwide Mortgage Licensing System (NMLS)
  • Completion of 20 hours of NMLS approved Pre-licensing Education Courses, including 3 hours of New York law;
  • Pass the SAFE Mortgage Loan Originator Test, consisting of a National Component with Uniform State Content
  • Submit a Surety Bond as outlined above