The surety bond required of South Carolina mortgage lenders is called a Mortgage Lender Special Deposit Bond. The state’s Board of Financial Institutions, Consumer Finance Division, is the agency charged with regulating the licensing and professional conduct of mortgage lenders.
The process and mechanism used to license South Carolina mortgage lenders is the Nationwide Multistate Licensing System, NMLS. The surety bond will also be filed through NMLS.
Once the surety bond is purchased, our agency can electronically file the bond on your behalf.
The South Carolina mortgage lender bond is in one of three amounts. The amount of surety bond required depends on the dollar amount of mortgage loans produced.
Accordingly, the breakdowns are as follows:
Qualifying for the $50,000 surety bond amount is accomplished by completion of a surety application and payment of the premium, just $375. The bond will thereafter be issued to you for immediate filing. There is neither a credit inquiry nor the standard underwriting review for the $50,000 surety bond amount.
Both the $100,000 and $150,000 surety bond will typically require a standard credit inquiry in addition to the surety bond application. However, established businesses of at least 3 years, and who meet certain other criteria may also qualify for streamlined processing of the bond.
For the $100,000 and $150,000 mortgage lender surety bond amounts, the premium amount is not affected by your qualification or lack thereof for streamlined underwriting.
If you meet underwriting guidelines:
The key term here is “estimated”. The results of any individual or corporate application may require a higher premium.
For those who qualify at the price points mentioned above, you will also have the option to prepay your surety bond for 2 or 3 years. While entirely at your discretion, prepayment of the South Carolina mortgage lender bond bond allows you a savings over year to year renewal of the surety bond premium.
However, you may also wish to consider whether or not you will require a different surety bond amount at the time of your bond’s expiry date and renewal. No refunds will be granted once purchased.
Using just the $50,000 mortgage lender surety bond amount, prepayment of the premium for 2 and 3 years are as follows:
The purpose of this surety bond is to serve as a financial guarantee of your compliance with all mortgage lender laws, rules, and any future amendments or additions.
More specifically, the surety bond is a financial guarantee of your compliance with the (South Carolina) Licensing of Mortgage Lenders Act.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit surety bonds throughout South Carolina.
Our agency also provides surety bonds nationwide.
Please contact our surety agency today at:
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