South Carolina Mortgage Broker Bond Update

South CarolinaSB 673 is a new bill introduced in South Carolina relating to mortgage lenders and brokers. The new bill amends the mortgage broker surety bond requirement and ratifies a new bonding requirement for mortgage lenders. The surety bond amount must be calculated by the sum dollar amount of loans originated in a calendar year in the State. The mortgage lenders bond amounts are as follows: $50,000 for $0 to $49,999,999 in loan volume; $100,000 for $50 million to $249,999,999 in loan volume; and $150,000 for loan volumes beyond $250 million. The surety bond can be no less than $150,000 regardless of the loan volume. The mortgage brokers must abide by the new the law which requires a surety bond in an amount as follows: $25,000 for $0 to $49,999,999 in loan volume; $50,000 for $50 million to $99,999,999 in loan volume; and $55,000 for amounts beyond $100 million. The previous law required a $10,000 license bond for mortgage brokers. As originally written, the surety bond quantities for mortgage lenders varied from $150,000 to $500,000, and SFAA and AIA cooperated to achieve surety bond amounts that uphold the value of the bond and make them broadly obtainable. The SB 673 became active on January 1st, 2010.