New York mortgage loan servicers are in the business of servicing existing mortgage loans which were originated by another entity, not the loan servicer company.
In New York, the Department of Financial Services and Statute 419 regulates the licensing and conduct of loan servicers.
New York mortgage loan servicers are also required to purchase a $250,000 surety bond as a condition for licensing.
For new licensees, the surety bond may be submitted after the application has been approved, but the mortgage servicer license will not be issued until the bond is purchased.
The purpose of the $250,000 NY mortgage loan servicer bond is for the protection of the consumer public.
More directly, this surety bond is a financial guarantee that mortgage loan servicers will comply with all statutes, rules, and regulations in their capacity as mortgage professionals.
The bond’s existence protects consumers against acts of fraud, theft, and criminal misconduct committed by a mortgage loan servicer, employees, owners, and agents of a loan servicing company in the performance of their duties.
As such, the bond’s requirement is solely for the benefit of others, namely, consumers. It does not serve as a liability insurance policy at all for the mortgage loan servicing company.
Rather it is a policy purchased by mortgage loan servicer to protect customers from potential act of financial harm.
Due to the amount of the bond, while qualifying for the bond should be relatively easy, the application will require more detailed information from applicants.
Our agency can take your application over the phone.
As part of the application process, you may be asked to provide information regarding:
As an applicant, you will have already been asked, and, presumably, passed muster with the Department of Financial Services, as there are financial requirements for licensing approval.
But these questions now just relate to obtaining the surety bond required.
Additionally, there will also be a standard credit check.
The premium, or the price you will pay for the mortgage loan servicer bond is determined as a percentage of the $250,000 surety bond requirement.
The factors which will determine your premium payment include:
Once the bond has been issued, our agency will have it sent to you for filing with NMLS.
We know we’ve provided a lot of information here, and no doubt, you’re wondering, ‘Ok; just how long does it take to get my bond?’
Once the application has been submitted and all requested information has been provided (it is possible that we’ll call you and ask for “additional application information” ), the bond can be issued within a few hours, or one or two business days.
We will have the bond immediately sent to you for filing with NMLS.
AmeriPro Surety Bonds is a surety bonds-only agency providing license and permit, contractor, court, and fiduciary bonds throughout New York.
We also provide surety bonds nationwide.
Our agency will work with you every step of the way in getting your mortgage loan servicer bond.