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How Much Does a Mortgage Broker Bond Cost in New York?
A New York Mortgage Broker Bond costs as little as $100. How much you pay to get bonded depends on the full bond amount you need and personal factors, such as your credit score.
- Full Bond Amount – Also known as the penal sum, this varies from $10,000 to $100,000. The exact amount depends on the broker’s annual application volume. However, getting bonded costs only 1% - 10% of that penal sum (see chart below).
- Personal Factors – The small percentage that you pay to get bonded is known as a bond rate or bond premium. Industry experience, business assets, and past bonding history can influence your bond rate. Nonetheless, your credit score is the main factor that determines how much your surety bond costs.
|
New York Mortgage Broker Bond Cost Based on Credit Score |
||||
|
Broker’s Annual Application Volume |
Surety Bond Amount |
Over 700 |
Between 600 – 699 |
Below 599 |
|
0 – 24 |
$10,000 |
$100 - $300 |
$300 - $500 |
$500 - $1,000 |
|
25 – 99 |
$25,000 |
$250 - $750 |
$750 - $1,250 |
$1,250 - $2,500 |
|
100 – 299 |
$50,000 |
$500 - $1,500 |
$1,500 - $2,500 |
$2,500 - $5,000 |
|
300 – 599 |
$75,000 |
$750 - $2,250 |
$2,250 - $3,750 |
$3,750 - $7,500 |
|
600+ |
$100,000 |
$1,000 - $3,000 |
$3,000 -$5,000 |
$5,000 - $10,000 |
How to Get a Mortgage Broker Bond in New York?
1. Apply For a Bond
Fill out our online application. It is one page and only takes a few minutes to complete. Once submitted, a free bond quote will be sent directly to your inbox.
Information you need to complete the form includes:
- Bond Name (Mortgage Broker Bond)
- Bond Amount
- Contact Information
- Broker License Number (if available)
Prefer to apply over the phone? Call us at (888) 592-6631.
We recently talked to an aspiring Mortgage Broker, Diane. She knew she needed a bond but was nervous about the process since she had never been bonded before. The bond expert she spoke to was able to put her mind at ease by answering her questions. By the end of the call, she got the bond she needed—and at a great price!
2. Get a Free Bond Quote
Your bond quote will arrive in your inbox a few minutes after you send the application. Please don’t forget to check your Spam Folder.
3. Purchase Your Bond
Go to our website to sign the bonding agreement and pay your bond invoice.
Once we receive payment, a printable copy of your bond will be sent via email. The original copy of the bond can also be sent via mail upon request. Please ensure that all information on the bond is correct. If not, contact us for a revised copy.
New York Mortgage Broker Bond Requirements
To become a Mortgage Broker in New York, you need a Mortgage Broker Bond. This surety bond is a legal requirement for getting a mortgage broker license through The New York Department of Financial Services (DFS).
The bond amount that a broker needs ranges from $10,000 to $100,000, depending on their annual application volume.
|
Broker’s Annual Application Volume |
Surety Bond Amount |
|
0 – 24 |
$10,000 |
|
25 – 99 |
$25,000 |
|
100 – 299 |
$50,000 |
|
300 – 599 |
$75,000 |
|
600+ |
$100,000 |
Bankers and loan originators will need additional bonds. These include the $50,000 Mortgage Banker Bond and a Mortgage Loan Originator Bond. The latter bond varies in amount based on loans originated (for individuals) or the number of licensed MLOs (for companies).
|
New York Mortgage Loan Originator Bond (Individual) |
|
|
Aggregate amount of NY loans originated |
Surety Bond Amount |
|
Less than $1,000,000 |
$10,000 |
|
$1,000,000 to $7,499,999 |
$15,000 |
|
$7,500,000 to $14,999,999 |
$25,000 |
|
$15,000,000 to $29,999,999 |
$50,000 |
|
$30,000,000 to $49,999,999 |
$75,000 |
|
$50,000,000+ |
$100,000 |
|
New York Mortgage Loan Originating Bond (Entity) |
|
|
Number of Licensed MLOs |
Surety Bond Amount |
|
Less Than 10 |
$100,000 |
|
10-15 |
$150,000 |
|
16-24 |
$250,000 |
|
25+ |
$500,000 |
These bonds help ensure that a broker is financially liable if they conduct business unethically or illegally. This includes, but isn’t limited to:
- Bait and switch advertising
- Charging prohibited fees
- Defrauding of misleading borrowers and lenders
- Obtaining property through fraud or misrepresentation
In the event that a broker is found guilty of these acts, their bond will compensate the affected party for losses. While the surety that issued the bond originally covers this cost, the broker must pay them back in full.
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