South Carolina Mortgage Broker Bond

The South Carolina Department of Consumer Affairs oversees mortgage broker licensing. A key licensing requirement is a surety bond, known as a South Carolina mortgage broker bond or Mortgage broker special deposit bond, with the required amount determined by the broker's loan volume.

This surety bond is an agreement between three parties: 

• Principal: The mortgage broker that needs to get the bond.
• Obligee: Entity requiring the principal to get bonded.
• Surety: The company that issues the bond.

Licensees must comply with the ethical standards established in the South Carolina Code of Laws Title 37. Consumers who experience financial loss caused by non-compliance with these standards can file a claim against the bond to obtain compensation. The surety company pays the claimant after validating the claim. The principal is responsible for reimbursing the surety for the total amount of the claim.

The cost of a South Carolina Mortgage Broker Bond ranges from $250 to $5,500, with a required bond amount between $25,000 and $55,000, depending on annual loan volume. For mortgage lenders and servicers, the cost ranges from $500 to $15,000, based on a required bond amount of $50,000 to $150,000.

The bond rate is usually between 1% and 10% which will define the bond premium or the cost of the bond. This chart helps you estimate your bond cost before applying.

Both new and returning customers want to know how much a bond costs. Your credit score is a major consideration. In addition, we review the applicant’s industry experience, finances and bond history to finalize the cost.

1. Apply For Your Bond

Obtaining a South Carolina mortgage broker bond is easy to do. To begin, choose from our two application methods.

1.  Apply for a bond online – Many of our customers appreciate the ability to apply for their new surety bond online at any hour of the day. The application only requires a few minutes of your time, and we will quickly deliver an instant quote to your email. 
2. Call us at (888)-592-6631 – If you prefer, you can call our bond experts to complete your application with our personalized assistance. We will happily answer your questions and provide a quick quote. 

When applying, you will need:

• Bond name (South Carolina Special Deposit Bond)
• Bond amount ($25,000 to $150,000, depending on loan volume and role)
• Email and contact information

2. Get a Quote

Our customers are happy to receive a fast bond quote from us. If you have questions or need assistance reviewing your quote, our bond experts are happy to help.

3. Purchase Your Bond

Spend a few moments reviewing your bond documents online. Please get in touch with us if you spot an error. After you make the invoice payment and sign the documents, we will email the original bond to you.

The requirements for a South Carolina Mortgage Broker Special Deposit Bond as well as the lender and servicer bond are enforced by the Department of Consumer Affairs. The bond is a requirement for obtaining a mortgage broker license or a mortgage lender/servicer license and must be filed through the Nationwide Multistate Licensing System (NMLS).

Mortgage brokers must obtain and maintain a surety bond in an amount set by the administrator, determined by the total dollar value of mortgage loans originated in a calendar year, as outlined below:

The surety bond for mortgage lenders or servicers must meet the minimum amount required based on the licensee’s South Carolina loan volume as reported in the mortgage call report.

If you have any questions regarding who needs a bond, the required bond amount, etc., please contact us. 

When one of our valued customers contacted us recently about a mortgage broker bond, he was unsure about the bond amount required. We explained the requirements and took his application over the phone. He appreciated our friendly service and how quickly we prepared his bond quote.

The licensing process for South Carolina mortgage brokers, lenders and servicers is through the Nationwide Mortgage License System. To apply, you must submit: 

• Financial statements 
• Surety bond form
• Approvals and designation
• A qualifying individual
• Credit report
• FBI criminal background check
• Business plan
• Certificate of Authority/Good Standing
• Document samples: South Carolina Attorney/Insurance Preference and South Carolina Mortgage Broker Fee Agreement
• Entity formation documents
• Organizational chart/description
• Books and records
• Lender/Broker notification (for lenders and servicers)
• Management chart (for lenders and servicers)
• Certificate of Authority/Good Standing (for lenders and servicers)

Nationwide Mortgage Licensing System. (n.d.). Checklist compiler.
https://mortgage.nationwidelicensingsystem.org/slr/SitePages/Checklist-Compiler.aspx

South Carolina Department of Consumer Affairs. (n.d.). South Carolina Department of Consumer Affairs.
https://consumer.sc.gov/

South Carolina Legislature. (n.d.). South Carolina Consumer Protection Code: Chapter 22 - Mortgage Lending Act.
https://www.scstatehouse.gov/code/t37c022.php

South Carolina Department of Consumer Affairs. (n.d.). Mortgage broker bond form [PDF].
https://consumer.sc.gov/sites/consumer/files/Documents/Business%20Resources%20Laws/Regulatory/Mortgage%20Broker/forms/Bond%20(1).pdf