The South Dakota Mortgage Brokerage Company Bond is required by the South Dakota Division of Banking.
According to the National Mortgage Licensing System, a South Dakota Mortgage Brokerage Company License “is required for any company who places mortgage loans with investors for a fee, but does not service such loans”. The South Dakota Mortgage Brokerage Company Bond is a requirement of the license application. The bond ensures that the licensee will faithfully comply with all laws and codes pertinent to his or her business activities, especially Title 54 Chapter 14 of the South Dakota Codified Law. The bond also provides financial compensation in case of noncompliance by the Principal.
The required amount of the South Dakota Mortgage Brokerage Company Bond depends on the company’s loan origination volume in South Dakota in the year prior:
- A loan volume between $0 and $25,000,000 requires a $25,000 surety bond.
- A loan volume between $25,000,000 and $100,000,000 requires a $35,000 surety bond.
- A loan volume greater than $100,000,000 requires a $50,000 surety bond.
The South Dakota Mortgage Brokerage Company Bond is continuous in nature; therefore, it remains in full force and effect until cancelled. The Surety may cancel the bond anytime with a written notice to the licensee and the South Dakota Division of Banking at least 30 days prior to the effective cancellation date.
License Fees and Requirements:
- Surety Bond
- Resident/Registered Agent
- Qualifying Individual
- Disclosure Questions
- Financial Statements
- Business Plan
- Certificate of Authority/Good Standing Certificate
- Formation Document
- Management & Organizational Ownership Chart
- MU2 Individual FBI Criminal Background Check
All fees are required by the obligee, not the Surety Company.
CLICK HERE for more licensing information from the South Dakota Division of Banking.
APPLY for your South Dakota Mortgage Brokerage Company Bond today!