South Carolina Mortgage Broker Special Deposit Bonds
South Carolina Mortgage Broker Bond Information
Mortgage Broker Special Deposit Bonds are surety bonds that must be continuously maintained by all licensed mortgage brokers and lenders operating in the State of South Carolina pursuant to Section 40-58-40 of the Code of Laws of South Carolina. In accordance with the terms of state laws, the surety bond must be deposited with the Administrator of the S.C. Department of Consumer Affairs as security in the event that the bonded mortgage broker or lender fails to comply with the Licensing of Mortgage Brokers Act, S.C. Code § 40-58-10 et seq. or fails to provide contracted mortgage broker services to customers. The surety bond liability may be terminated through written notice from the surety company to the Administrator after forty five days from the date of such notice.
How Much Does a Mortgage Broker Bond Cost in South Carolina?
Getting Your South Carolina Business License or Registration
The following items are generally required to obtain a South Carolina Mortgage License.
- Qualifying Individual: Each licensee is required to have a Qualifying Individual (QI) with three years of residential mortgage lending experience.
- Surety Bond. An original Mortgage Broker surety bond in the amount of $25,000 furnished by a surety company authorized to conduct business in South Carolina such as Surety Bonds Direct.
- Credit Report: Control persons are required to authorize a credit report through NMLS.
- MU2 Individual FBI Criminal Background Check Requirements: Control Persons that are not licensed MLOs must authorize a FBI criminal background check (CBC) through the NMLS.
- Business Plan: A business plan outlining strategy, products, target markets and operating structure.
- Financial Statements: A financial statement prepared in accordance with Generally Accepted Accounting Principles dated within 90 days of your fiscal year end.
- Books and Records. Licensees are required to maintain their books and records for loans made to residents of South Carolina at a designated location within the State, unless they receive express written authorization to store them out of State or electronically as provided pursuant to SC Code Section 40-58-65(A).
- Management Chart: An organizational chart showing the applicant’s divisions, officers, and managers.
Other Helpful Information and Links
Contact South Carolina Department of Consumer Affairs licensing staff by phone at 803-734-4200 or send your questions via e-mail to SCMortgageBroker@scconsumer.gov for additional assistance.
The state of South Carolina has two Mortgage Agencies:
The South Carolina Board of Financial Institutions regulates Mortgage Lender/Servicers and Mortgage Loan Originators.
South Carolina Department of Consumer Affairs regulates Mortgage Brokers and Mortgage Broker Loan Originators.