The South Carolina Mortgage Broker Bond is required by the Administrator of the Department of Consumer Affairs of the State of South Carolina.
According to the National Mortgage Licensing System, South Carolina requires a license of “any person…who acts as a mortgage broker, for compensation or gain… by:
- Soliciting, processing, placing, or negotiating a mortgage loan for a borrower from a mortgage lender or depository institution
- Engaging in table funding of a mortgage loan
- Acting as a loan correspondent”.
Obtaining a surety bond is a licensing requirement for mortgage brokers under Section 40-58-40 of the Code of Laws of South Carolina. The South Carolina Mortgage Broker Bond ensures that mortgage brokers comply with the Licensing of Mortgage Brokers Act, South Carolina Code Section 40-58-10. The bond also provides financial compensation for any persons injured in case of noncompliance by the broker.
The required bond amount of a South Carolina Mortgage Broker Bond is at least $25,000; however, actual bond amount is based on dollar loan volume from the previous calendar year:
- A loan volume between $0 and $49,999,999 requires a $25,000 surety bond.
- A loan volume between $50,000,000 and $99,999,999 requires a $40,000 surety bond.
- A loan volume greater than $100,000,000 requires a $55,000 surety bond.
The South Carolina Mortgage Bond is continuous in nature; therefore, it remains in full force and effect until cancelled. The Surety can cancel the bond at any time with written notice to the Administrator at least 45 days from the effective cancellation date.
License Fees and Requirements:
- Surety bond
- Criminal background check (State and Federal)
- Credit Report
- Pre-licensing Education
- South Carolina Location
- $850 licensing fee (including the NMLS processing fee)
All fees are required by the obligee, not the Surety Company.
APPLY for your South Carolina Mortgage Broker Bond today!
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