Mortgage companies and individuals in New York who operate as a Loan Originator are required to file a surety bond under Section 599-K of Article 12-E with the New York State Department of Financial Services (NYDFS). A Loan Originator is defined as anyone who is compensated for taking residential mortgage loan applications or who offers/negotiates terms of a residential mortgage loan. Unlike most mortgage-related bonds throughout the United States that are filed electronically with the NMLS, New York Mortgage Loan Originator Surety Bonds are mailed to the NYDFS. In New York, there are two different Loan Originator Bond designations: “Originating Entity” or “Individual Mortgage Loan Originator”.
Below is a list of bond amounts for “Originating Entity” requirements:
| Required amount of bond | Aggregate $ amount of NY 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 $29,999,999 |
| $75,000 | $30,000,000 to $49,999,999 |
| $100,000 | $50,000,000+ |
MLOs who will not be covered by an Originating Entity bond must submit an Individual Mortgage Loan Originator bond. “Individual Mortgage Loan Originator” bond amounts can be found below:
| Number of Individuals who are Required to be Licensed as Mortgage Loan Originators | Required Principal Amount of Surety Bond |
|---|---|
| less than 10 | $100,000 |
| 10-15 | $150,000 |
| 16-24 | $250,000 |
| 25 or more | $500,000 |
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.