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 |
The amount of the surety bond shall be determined from information submitted in the annual Volume of Operations Report (VOOR). The 2004 bond will be based upon the 2002 VOOR figures reported to the department. Thereafter, adjustments to the amount of the bond shall be made within 30 days after filing the applicable VOOR. Moreover, a registered mortgage broker may submit a sworn statement indicating the number of applications taken during the first half of the calendar year if such number, on an annualized basis, would change the required amount of the surety bond. Such corporate surety bond shall be issued by a bonding company or insurance company authorized to do business in this State. If the superintendent determines, in his or her sole discretion, that a registrant has engaged in a pattern of conduct resulting in bona fide consumer complaints of misconduct, the superintendent may require such registrant to post a surety bond, or keep on deposit, twice the amount of such bond or deposit as is required consistent with this subdivision.
The term application shall have the same meaning as that term has in section 202.2(f) of Regulation B of the Federal Reserve System (12 CFR*202), including the interpretations thereof contained in Supplement 1 to Part 202-Official Staff Interpretations.
"In the event of the insolvency, liquidation or bankruptcy of such registrant, or the expiration, surrender or revocation of such mortgage broker's registration, or where the Superintendent takes possession of such registrant, the proceeds of this bond shall constitute a trust fund to be used exclusively by the Superintendent to reimburse consumer fees or other charges determined by the Superintendent to be improperly charged or collected and to pay past due Department examination costs and assessments charged to the registrant, unpaid penalties, or other obligations of the registrant. In the event of the insolvency, liquidation or bankruptcy of the mortgage broker, or the expiration, surrender or revocation of such mortgage broker's registration, or where the Superintendent takes possession of such registrant, the proceeds of the bond shall be paid to the Superintendent forthwith for disposition in accordance with the applicable provisions of the Banking Law."
Footnotes
* For information regarding the United States Code (USC or U.S.C.), the Code of Federal Regulations (CFR) and the Federal Register, see Supervisory Policy G 1.
N.Y. Comp. Codes R. & Regs. Tit. 3 § 410.14