3 CRR-NY 420.15NY-CRR
3 CRR-NY 420.15
3 CRR-NY 420.15
420.15 Surety bonds.
(a) Each mortgage loan originator shall be covered by a surety bond in accordance with section 599-k of the Banking Law. The surety bond of an originating entity may be used to satisfy the mortgage loan originator’s surety bond requirement; provided that such surety bond contains coverage for each mortgage loan originator not otherwise covered by a qualifying surety bond in an amount prescribed in subdivision (b) of this section. The surety bond shall be in a form prescribed by the superintendent.
(b) The penal amount of the required surety bond shall be maintained in an amount that reflects the dollar amount of loans originated by the mortgage loan originator as determined by the following requirements:
| Required amount of bond | Aggregate $ amount of NY loans originated |
| $10,000 | Less than $1,000,000 |
| $15,000 | $1,000,000 to $7,499,999 |
| $25,000 | $7,500,000 to $14,999,999 |
| $50,000 | $15,000,000 to $29,999,999 |
| $75,000 | $30,000,000 to $49,999,999 |
| $100,000 | $50,000,000+ |
The amount of loans originated for this purpose shall be the volume of loans originated in the prior calendar year by the MLO. The MLO or originating entity shall provide proof of the existence of a bond in the requisite amount at the time of each annual renewal of an MLO’s license and such other times as requested by the superintendent. If an originating entity maintains a bond covering its MLOs, such bond shall be in an amount equal to the aggregate of the individual bonds required for all covered MLOs calculated as set forth above; provided, however, that any bond maintained by an originating entity to cover its MLOs is not required to be in excess of:
(1) $100,000 if the originating entity has less than 10 covered MLOs;
(2) $150,000 if the originating entity has 10 but no more than 15 covered MLOs;
(3) $250,000 if the originating entity has 16 but no more than 24 covered MLOs; and
(4) $500,000 if the originating entity has 25 or more covered MLOs.
Each originating entity obtaining a bond covering its MLOs also shall deliver to the department at such time a certification with respect to such bond in the form acceptable to the superintendent.
(c) The superintendent reserves the right to require the filing of a bond in a penal amount greater than set forth in subdivision (b) of this section if the nature or business of an MLO or originating entity requires in the reasonable judgment of the superintendent such additional protection for consumers.
(d) Immediately upon recovery on any claim or action on or under the bond, the mortgage loan originator or the originating entity as the case may be, shall file a new or supplemental bond restoring the face amount of the bond to the amount required by the superintendent.
3 CRR-NY 420.15
Current through March 31, 2022
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