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The New Mexico Regulation and Licensing Department is responsible for mortgage loan company licensing. The licensing rules and regulations are defined under House Bill 308. A condition of licensing is a surety bond.
This surety bond is an agreement between three parties:
- Principal: The mortgage loan company that needs to get the bond.
- Obligee: The entity requiring the principal to get bonded.
- Surety: The company that issues the bond.
A surety bond is a financial assurance that anyone negatively affected by a mortgage loan company’s unethical or illegal actions can be compensated appropriately. Each claim against the bond is researched by the surety for validation. The claimant is compensated by the surety if the claim is deemed to be valid.
The principal must reimburse the surety for the amount it paid to the claimant. Avoiding claims against the bond is best accomplished by abiding by the state’s laws and ethical standards.
How Much Does a Mortgage Loan Company Bond Cost in New Mexico?
The cost of a New Mexico mortgage loan company bond ranges from $500 to $15,000, depending on the required bond amount, which is based on the previous year’s loan originations:
- $50,000 bond for loan originations up to $3 million
- $100,000 bond for loan originations over $3 million to $10 million
- $150,000 bond for loan originations over $10 million
A bond rate of 1% to 10% of the required bond amount applies. You may also hear this referred to as the bond premium or the cost of the bond.
|
New Mexico Mortgage Loan Company Bond Cost by Credit Score |
|||
|
Surety Bond Amount |
700 or Higher |
600-699 |
599 or Below |
|
$50,000 |
$500 - $1,500 |
$1,500 - $2,500 |
$2,500 - $5,000 |
|
$100,000 |
$1,000 - $3,000 |
$3,000 - $5,000 |
$5,000 - $10,000 |
|
$150,000 |
$1,500 - $4,500 |
$$4,500 - $7,500 |
$7,500 - $15,000 |
Some of our valued customers are interested in knowing how we determine how much a bond costs. In addition to looking at an applicant’s credit scores, we consider the applicant’s previous bond history, finances and industry experience.
How to Get a Mortgage Loan Company Bond in New Mexico
1. Apply For Your Bond
Obtaining a New Mexico mortgage loan company bond is a quick process with three simple steps. To begin, choose your preferred application method.
- Apply for a bond online – You can access our online bond application 24/7. This short form can usually be completed within a few minutes.
- Call us at (888) 592-6631 – An alternative is to contact one of our bond specialists by phone for personalized assistance.
When applying, you will need:
- Bond name (Mortgage Loan Company Surety Bond)
- Bond amount ($50,000 - $150,000)
- Email and contact information
2. Get a Quote
Our customers benefit from a fast bond quote after they apply with us. After you receive your bond via email, please reach out to us if you would like us to review it with you or if you identify any areas that require revision.
3. Purchase Your Bond
To complete your purchase, sign the documents and make your payment online. After you do so, you will receive the original bond via email.
New Mexico Mortgage Company Bond Requirements
When applying for a New Mexico mortgage loan company license, you must upload an electronic surety bond with your other application items to the NMLS. While the NMLS processes applications, , the New Mexico Regulation and Licensing Department oversees licensing compliance and requires the use of the Mortgage Loan Company Surety Bond. This is a continuous bond that remains in force until it is canceled by the surety. To do so, the surety must send the obligee and the principal a 30-day notice by certified mail.
If you have any questions regarding the required bond amount, the definition and role of a mortgage loan company in New Mexico, etc., please contact us.
When a customer contacted us recently, he was unsure if he needed to update his bond amount due to the company’s previous year’s loan originations. We answered his question fully so that he could remain compliant with bond requirements. He appreciated the personal attention he received from our friendly bond experts.
How to Get Your Mortgage Loan Company License in New Mexico
The licensing process for New Mexico mortgage loan companies is completed via the Nationwide Mortgage License System. The following items are required to apply for a license:
- Application
- Surety bond
- Financial statement
- Resident/registered agent
- Qualifying individual
- Credit report
- Certificate of Authority/Good Standing
- Flow of funds structure
- Memorandum of tax certification
- Formation documents
- Verification of experience
- Longevity in business
Sources
Nationwide Mortgage Licensing System. (n.d.). Checklist compiler.
https://mortgage.nationwidelicensingsystem.org/slr/SitePages/Checklist-Compiler.aspx
New Mexico Regulation and Licensing Department. (n.d.). Financial Institutions Division.
https://www.rld.nm.gov/financial-institutions/
New Mexico Legislature. (n.d.). House Bill 308 final version.
https://www.nmlegis.gov/sessions/01%20Regular/FinalVersions/HB0308FV.html
New Mexico Regulation and Licensing Department. (n.d.). Mortgage loan company surety bond [PDF]. https://api.realfile.rtsclients.com/PublicFiles/1ee897135beb4b1c82715d36398de4c5/4f25de5b-d230-4d04-811e-525ebdcdbffd/Mortgage%20Loan%20Company%20Surety%20Bond.pdf