New Mexico Surety Bonds

Surety Bond Requirements in NM

New Mexico requires certain businesses and professionals to post a surety bond to help protect consumers. Contractors, pawnbrokers, and other business owners will need to check their city and county licensing departments for bonding requirements. Albuquerque, for example, requires a number of contractors to have bonds, as does Bernalillo County.

If you have questions about the state’s bonding regulations for your industry, check out the resources provided below or get in touch with our surety bond specialists.

NNA Surety Bonds has been helping business owners across the U.S. meet their bonding requirements since 1957. We currently offer many popular NM surety bonds, including:

  • Appraisal management company bonds
  • Collection agency bonds
  • Independent and public adjuster bonds
  • Mortgage loan company bonds
  • Motor vehicle dealer bonds
  • Escrow company bonds
  • Real estate broker bonds

We offer the following surety bonds in the state of New Mexico:

Appraisal Management Company (AMC) Bond

To do business in New Mexico as an appraisal management company, or AMC, you’ll need a $25,000 bond. Required by the Board of Real Estate Appraisers, this bond can cost as little as $250 for a year, based on your credit rating and business finances.

The bond agreement states that you will comply with the provisions of the Appraisal Management Company Registration Act. In the event of wrongdoing by your company, injured parties may be compensated up to the full value of the bond.

Collection Agency Surety Bond

According to the New Mexico Financial Institutions Division, debt collection agencies are permitted to do business in the state by acquiring a license and maintaining a $5,000 surety bond. An additional $5,000 bond must be purchased for each branch licensed. The price for these surety bonds is dependent upon your credit rating.

Escrow Agent Surety Bond

Escrow companies doing business in New Mexico must post a $100,000 surety bond, as required by the NM Regulation and Licensing Department, Financial Institutions Division. The bond serves to ensure that victims of theft, fraud or other unlawful acts by the escrow company will be compensated for their loss. If you have good credit scores, your premium for this bond could be as low as $1,000.

Insurance Adjuster Bond

The New Mexico Superintendent of Insurance requires you to post a $10,000 surety bond in order to work as an independent adjuster or as a public adjuster. Acquiring the bond is a necessary step toward being licensed by the state.

If the licensee violates state law or any provisions of the bond, the Division of Insurance or any member of the public may file a claim against your bond to recover damages. Premiums for this bond are based on your credit and start as low as $100.

Mortgage Loan Company Bond

The New Mexico Regulation and Licensing Department requires mortgage loan companies, originators, and brokers to post a surety bond as a condition of licensing. Your required bond value is based on your company’s annual amount of loans:

Surety Bond Amounts for NM Mortgage Loan Companies
Loans Originated Annually Bond Amount Required
$0 to $3,000,000 $50,000
$3,000,000 to $10,000,000 $75,000
Over $10,000,000 $150,000

Loan companies agree to abide by the terms of the bond, which requires compliance with all provisions of the Mortgage Loan Company Act. Claims may be awarded up to the full amount of the bond if consumers or the state are harmed financially by fraud, illegal acts, or other violations of the bond’s terms by the mortgage company.

Mortgage loan licensing is handled through the Nationwide Multistate Licensing System (NMLS). Annual premium amounts will vary with your credit rating and business financials.

Motor Vehicle Dealer Bond

In New Mexico, if you’re an auto dismantler or a new or used car dealer who sells more than four vehicles per year, you are required to be licensed by the Dealer Licensing Bureau and post a $50,000 surety bond. Motorcycle dealers must post a $12,500 surety bond.

The state requires this bond to protect your customers, other dealers, and the state from harm. Should a dealer commit fraudulent acts or fail to follow legal provisions of the bond, a claim up to the full amount of the bond could be awarded to the injured party.

Annual surety bond rates can start as low as $500 for auto dealers and $125 for motorcycle dealers.

New Mexico Surety Bond Costs
Bond Name Coverage Amount Cost
(Annual Premium)
Regulatory Authority
Appraisal Management Company Bond $25,000 $250* New Mexico Real Estate Appraisers Board
Collection Agency Bond $5,000 $100* New Mexico Financial Institutions Division
Escrow Company License Bond $100,000 $1,000* New Mexico Regulation and Licensing Department Financial Institutions Division
Insurance Adjuster Bond $10,000 $100* New Mexico Office of the Superintendent of Insurance
Mortgage Broker Bond $50,000–$150,000 $375–$1,125* New Mexico Regulation and Licensing Department Financial Institutions Division
Motor Vehicle Dealer Bond $12,500/$50,000 $125/$500* New Mexico Motor Vehicle Division

* Cost can vary depending on the bond amount required and your credit rating

Get Your New Mexico Surety Bond

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Our knowledge of New Mexico bond requirements enables us to provide accurate quotes quickly. For guidance through the process of selecting surety bonds for your business, talk to one of our experts today.

For faster service, call us at 855-215-2160
Monday to Friday, 6 a.m. to 5 p.m. (PT)

Providing Bonds and Insurance Since 1957