What are South Carolina finance & mortgage broker bonds?
Finance and mortgage broker bonds are legally binding agreements between three parties:
- Finance professionals such as mortgage brokers and finance lenders
- A government agency like the South Carolina Department of Consumer Affairs
- A surety company
If the finance professional fails to comply with the regulations, the surety company will pay out financial losses to damaged parties up to the full bond amount. The finance professional is liable to reimburse the surety for any damages paid under the bond.
How much do South Carolina finance & mortgage broker bonds cost?
The required bond amount for finance bonds in the State of South Carolina varies depending on the license type:
- Mortgage lender bond: $50,000 and upwards
- Mortgage loan broker special deposit bond: $25,000
- Premium service company bond: $50,000
The required bond costs for other finance bonds in South Carolina are as follows:
- Broker-Dealer and Investment Advisor Bond: $35,000
- Credit Counseling Organization Bond: Between $25,000 and $75,000
- Mortgage Broker Qualified Loan Originator Bond: $25,000
The surety company issuing the bond determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for South Carolina finance and mortgage broker bonds typically cost between 1% and 5% of the total bond amount. EZSurety has issued mortgage broker bonds in South Carolina for premiums as low as $250.
During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a South Carolina finance bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.
How to get your mortgage broker license in South Carolina?
To become a mortgage broker in South Carolina you must meet the following licensing requirements:
- Complete the criminal background check
- Have a Qualifying Individual (QI) with three years of residential lending experience
- Submit your personal financial statements
- Provide a copy of your credit report
- Submit your application through the Nationwide Multistate Licensing System & Registry (NMLS)
- Post the $25,000 surety bond
- Pay the $850 licensing fees
For information on obtaining other finance licenses in South Carolina, check out the NMLS Resource Center.