Mortgage loan servicer bond cost
If you service mortgage loans for property located in New York, you are mandated to post a surety bond. Bond amounts are determined by the Superintendent of Financial Services. Be sure to have your given bond amount on-hand when speaking with a mortgage loan servicer specialist.
Providing this information can speed up your bonding process and can even lower your bond premium. These bonds are subject to underwriting, meaning that amount you pay is determined by the financials of your credit report.
Why this bond
These bonds offer reimbursement to the Superintendent of Financial Services in the event of insolvency, bankruptcy or liquidation of the principal (mortgage loan servicer). If the principal violates the terms of the bond, a valid claim can be filed against this bond.
The surety will cover damages up to the penal sum of the bond, but the principal must reimburse the surety for all damages paid out in a timely manner.
Mortgage loan servicer bond details
All bonds will remain effective unless canceled by the surety. If the surety chooses to cancel a bond, a written cancellation notice must be mailed to the Superintendent of Financial Services 30 days prior to the given cancellation date.
Become a mortgage loan servicer
To legally conduct mortgage loan servicer business, you must be licensed. License applications must be completed in full and sent to the Department of Financial Services. Submitted applications must have the following attachments:
- $3,000 investigation fee
- $102.25 fingerprint processing fee
- $500 branch office fee
- Surety bond
- Net worth requirement
- Letter of assurance
- And More
Apply for your surety bond
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