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New York State Department of Financial Services · NY

Increased Bond Requirement Effective July 1, 2004

July 1, 2004

Summary

The New York Department of Financial Services has updated surety bond requirements for licensed mortgage bankers and brokers based on annual loan volume and application activity. Regulated entities must maintain the appropriate bond amount, or a pledged deposit, effective July 1, 2004.

Industry Letter

Increased Bond Requirement Effective July 1, 2004


June 8, 2004

To the Institution Addressed:


I would like to take this opportunity to remind you that increased bond requirements become effective July 1, 2004. A pledged deposit may be utilized in lieu of a bond. These new requirements are set forth in Part 410 of the Superintendent’s Regulations and may be found on the Department’s web site under Selected Regulations. If you have not already obtained or arranged for a bond or pledged deposit in the appropriate amount, you should treat this as an urgent matter.

For mortgage bankers, the amounts are as follows:

Aggregate $ Amount of NY Loans Closed

Required Amount of Surety Bond

$300,000,000+ $500,000
$200,000,000 - $299,999,999 $350,000
$100,000,000 - $199,999,999 $250,000
$  30,000,000 - $  99,999,999 $150,000
$ 10,000,000  - $  29,999,999 $100,000
$                 0  - $    9,999,999 $  50,000 

For Mortgage brokers, the amounts are as follows:

Number of New York Applications

Required Amount of Surety Bond

600+   $100,000
300 - 599 $  75,000
100-  299  $  50,000
25 –  99  $  25,000
0  -  24  $  10,000

Should you have any questions, please contact me at 212 709-5540.

Very truly yours,

Kenneth Bielemeier
Deputy Superintendent of Banks

Source: https://www.dfs.ny.gov/industry_guidance/industry_letters/il20040608_incr_bond_require_eff_20040701

Common questions

What does "Increased Bond Requirement Effective July 1, 2004" cover?
The New York Department of Financial Services has updated surety bond requirements for licensed mortgage bankers and brokers based on annual loan volume…
Which agency issued this update?
This update was issued by New York State Department of Financial Services.
When was it published?
It was published on July 1, 2004.

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