A New Mexico mortgage loan company bond, for both companies or individuals, is required in the amount of $50,000, $100,000, or $150,000. Get the best pricing for your surety bond today with AmeriPro Surety Bonds: 844-589-9732.
AmeriPro Surety Bonds provides the New Mexico mortgage loan company bond for both new licensees and existing licensees who are required to renew their licensing and may want to work a different surety company.
We assist BOTH companies AND individuals to obtain the mortgage loan company bond at the best pricing.
A mortgage company is a company which can either originate the funding for a loan for a home or commercial property, or maintain the lien on these properties while payments are made to satisfy the loan; or both.
A mortgage loan company operating in New Mexico must be licensed by the New Mexico Regulation & Licensing Department, Financial Institutions Division.
To be licensed as either a New Mexico mortgage loan company or as an individual, the following will be required:
* Proof of a “qualified manager” who has a minimum of 2 years experience in the mortgage industry. The qualified manager may have experience in a related industry within the prior 4 years;
* The “qualified manager” may only represent one New Mexico mortgage loan company;
* The applicant’s name, along with the originator license number. The application must list every location where the mortgage loan company will maintain an office;
* A submission of a financial statement of the applicant. The financial statement must be verified by a principal of the mortgage loan company;
* The applicant must disclose any felony or misdemeanor convictions involving “moral turpitude” according the rules established in the Criminal Offender Employment Act.
The Mortgage Loan Company Act gives a detailed further description of the requirements to be licensed as a New Mexico mortgage loan company.
The license for a New Mexico mortgage loan company or individual renews on December 31st of each year.
The New Mexico mortgage loan company bond will need to be filed with the Financial Institutions Division.
The required bond will be in one of 3 amounts:
For new applicants with no prior history in the mortgage loan business,
OR,
Businesses or individuals who originate loans between $0 and $3,000,000,
A $50,000 New Mexico mortgage company bond will be required.
For businesses or individuals with more than $3,000,000 and less than $10,000,000 in loan origination,
A $100,000 New Mexico mortgage company bond will be required.
For businesses or individuals with more than $10,000,000 in loan origination,
A $150,000 New Mexico mortgage company bond will be required.
The amount of the New Mexico mortgage loan company bond will primarily depend on two criteria:
* The amount of the bond required;
* The applicant’s credit score.
For those with optimal credit scores, a $50,000 surety bond may be $500; a $100,000 surety bond may be $1,000; and a $150,000 surety bond may be $1,500.
The premium, of course, will vary, and is subject to a credit inquiry.
The New Mexico mortgage loan company bond is issued for a period of one year.
Applicants ideally should have the bond issued to run concurrently with their New Mexico mortgage loan company license to ensure that no gaps in coverage occur.
The New Mexico mortgage loan company bond, unlike in insurance, which has two sides, or “parties”, has 3 sides.
* The principal is the applicant for the bond. The principal purchases the bond as a guarantee to satisfy the requirements of the obligee.
* The obligee, in the case of the New Mexico mortgage loan company bond is the New Mexico Financial Institutions Division.
This department is the one requiring the bond.
The bond is issued to protect the state and the consumer from acts of fraud, theft, or criminal activity committed by the mortgage loan originator as it relates to the business of New Mexico mortgage loan companies.
* The surety company is the entity issuing the bond and who has the financial capacity to pay any claims on the bond.
Unlike insurance, however, any claims paid out on a surety bond must be fully reimbursed by the principal.
AmeriPro Surety Bonds is your agent with the surety.
AmeriPro Surety Bonds is a nationwide surety-bond only company which provides license and permit, contractor, and fiduciary surety bonds.
We will work with you to find the best pricing for your New Mexico mortgage loan company bond.
