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South Dakota Mortgage Broker License: Step-by-Step Guide

In the state of South Dakota, mortgage brokers and mortgage lenders are required to obtain a state license. The South Dakota Department of Labor & Regulation regulates and issues the mortgage licenses.

The license application process for companies and individuals is handled by the Nationwide Mortgage Licensing System (NMLS). NMLS allows mortgage entities or loan originators to apply or renew a license online.

Types of Mortgage Licenses in South Dakota

South Dakota has three main state license types: Company, Branch, and Individual. Each license type depends on the work you wish to perform. The mortgage company licenses are generally divided into Mortgage Brokerage and Mortgage Lenders.

In this guide, we’ll cover the most common licenses only. You can review the full list on the NMLS website.

Most Common Company Licenses

  • Mortgage Brokerage License - allows companies and sole proprietorships to place (but not service) mortgage loans with investors.
  • Mortgage Lender License - allows companies and sole proprietorships to originate, sell, and service mortgages.

South Dakota State Requirements

All license applications are to be submitted online through NMLS. Please note that all control persons are required to undergo a both a federal and state background investigation. For the state background check, South Dakota uses state-specific cards which are mailed to the applicant once the amendment filing is received via NMLS.

For further information regarding the license requirements contact SD Division of Banking at (605) 773-3421 or [email protected].

For additional assistance with NMLS, please contact NMLS call center at (855) 665-7123.

Education and Exams

Passing an exam is obligatory for some, but not all license types. In South Dakota, you don’t need to complete a pre-licensure course or pass an examination in order to obtain a Mortgage Brokerage or Mortgage Lender license.

SD Mortgage Broker Bonds

Bonds for Company Licenses

  • Mortgage Brokerage License - In order to obtain a Brokerage license, all applicants must furnish a surety bond. The amount depends on the applicant’s loan origination volume in the previous year.
    • $25,000 surety bond for 0 - $25,000,000 in loan volume or if the applicant has no loan origination volume in SD in the previous year.
    • $35,000 surety bond for $25,000,000 - $100,000,000 in loan volume.
    • $50,000 surety bond if the loan origination volume exceeds $100,000,000.
  • Mortgage Lender License - All applicants are required to submit a surety bond. The amount is based on the applicant’s loan origination volume in the previous year.
    • $25,000 surety bond for 0 - $25,000,000 in loan volume or if the applicant has no previous year loan origination volume in SD.
    • $35,000 surety bond for $25,000,000 - $100,000,000 in loan volume.
    • $50,000 surety bond for loan origination volume over $100,000,000.

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Licensing Fees

Fees for Company Licenses

All fees must be submitted through NMLS and are not refundable.

  • Mortgage Brokerage License
    • $500 license costs.
    • $100 NMLS processing fee.
    • $36.26 background check.
  • Mortgage Lender License
    • $750 license costs.
    • $100 NMLS processing fee.
    • $36.26 background check.

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