New Mexico Escrow Agent Bond Requirements
Any person in New Mexico “engaged in the business of receiving escrows for deposit or delivery for compensation” is required to obtain an escrow company license in the state.
A central requirement of the licensing process for escrow companies is to obtain a $100,000 escrow agent bond.
This bond is renewed annually, along with your license.
Why Is This Bond Required?
The New Mexico Escrow Company Act (Section 58-22 New Mexico Statutes Annotated) requires applicants for an escrow company license to obtain a bond as a guarantee for their compliance with the Act’s provision.
Specifically, the bond is intended to guarantee that licensees will:
- Obtain and maintain a license
- Comply with the provisions of the Act
- Apply all funds received and perform all obligations in accordance with the Act
- Pay any money that becomes due to the state or any person under the provisions of the Act
If a company violates any of these conditions, a claim may be brought against their bond to seek compensation for any losses or damages that arise out of such a violation.
The surety company that has issued the bond must then investigate the claim and determine whether and what amount of compensation to extend. Such compensation may be as much as the full penal sum of the bond.
If you want to know more about how bonds work, see our ‘What is a surety bond’ guide for a full explanation!
To find out more about the cost of this bond in New Mexico, and how to apply for yours - see the sections below!
Want to know more about the bonding requirements for escrow companies in New Mexico? Call us at 866.450.3412 to speak to one of our surety experts.
How Much Does the New Mexico Escrow Agent Bond Cost?
To get bonded, you must pay a surety bond premium. This premium is equal to a percentage of the full amount of your bond. Escrow companies in New Mexico must post a bond in the amount of $100,000.
When setting a bond rate for you, a surety will consider the following factors.
Factors That Determine Your Bond Cost
Your personal credit score is the main factor that influences your bond cost. Sureties consider high credit scores as an indicator of financial stability and reliability, and as posing a smaller risk. For this reason, the higher an applicant’s score is, the lower their cost will typically be.
On top of your credit score, a surety will frequently also request to review other parts of your financial and professional history. These may include:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
Want to know more about how your bond cost is determined? See our surety bond cost guide for a full overview of the process!
|New Mexico Escrow Agent Bond Cost Based on Credit Score|
|License type||Bond Amount||Credit Score|
|Above 700||650-699||600-649||Below 599|
* The table provides a bond cost ballpark estimate based on the applicant's credit score. Actual bond prices can differ due to a number of factors. For an exact quote, please complete our online application. It's fast and 100% free!.
How to Get a New Mexico Escrow Agent Bond
Ready to get bonded? Click on the banner below to complete our short surety bond application form.
You will then receive your free bond quote as well as full information regarding the bonding process and next steps.
Do you have any additional questions about getting a New Mexico escrow company bond? Call us at 866.450.3412 to speak to one of our surety professionals!