New York Surety Bond

Single Source Insurance is a leading provider of New York State bonds. Apply for a NY Surety Bond today! We offer a full range of bonds, including Surety Bonds, Fidelity Bonds, garage liability and more. Even if you do not see the bond you are looking for, we likely have it. Contact us for a full list if you don't see what you need.

New York Mortgage Lender Bond

New York mortgage lenders, also called mortgage loan originators, need a surety bond to be fully licensed. The state Department of Financial Services licenses lenders through the Nationwide Multistate Licensing System (NMLS).

Why do lenders need this bond?

Mortgage lenders handle sensitive information and negligence or malpractice can cause extensive financial harm to consumers. The surety bond provides a means of seeking reimbursement should a consumer suffer such a loss.

The amount of surety bond coverage a New York mortgage lender or originator needs is dependent on the dollar value of mortgage loans originated in the previous year. The scale is as follows:

Less than $1,000,000�in originated mortgage loans�$10,000 bond
$1,000,000-$749,999,999�in originated mortgage loans�$15,000 bond
$7,500,000-$14,999,999�in originated mortgage loans�$25,000 bond
$15,000,000-$29,999,999�in originated mortgage loans�$50,000 bond
$30,000,000-$49,999,999�in originated mortgage loans�$75,000 bond
$50,000,000 or more in originated mortgage loans�$100,000 bond

First-time mortgage lender applicants need $10,000 of bond coverage. If a claim is made on this bond and the claim is proven and paid out, the principal must reimburse the surety company the full claim amount.

How much does this bond cost?

The cost of this bond varies greatly, since the amount of coverage depends on the dollar value of mortgage loans the lender originated in the previous year. Depending on a review of your credit, and the amount of coverage needed, your bond premium could vary from 1-10%: