South Carolina Mortgage Lender or Servicer Surety Bonds

The South Carolina Board of Financial Institutions (BOFI) administers Mortgage Lender and Mortgage Servicers licensing through the National Mortgage Licensing System (NMLS). South Carolina requires all mortgage lenders to be licensed to provide mortgage lending services and to to obtain a surety bond. The surety bond guarantees compliance of state laws and ethical and faithful performance of duties.

Surety Bond and License Requirements:

1. Applicants will need to complete the mortgage lender/servicer application found on the NMLS website and pay the license, credit report, and NMLS processing fees.
2. Provide the following documents as attachments to the application: Business plan and organizational chart.
3. If the business will be a limited liability company, partnership or corporation, provide copies of the formation documents. These include Corporate Charter of Articles of Incorporation or Articles of Organization and Operating Agreement or Partnership Agreement.
4. Provide a Certificate of Authority or Good Standing Certificate from South Carolina and/or the business home state.
5. Complete the Lender/Broker Notification and email to cfd@bofi.sc.gov.
6. Obtain a surety bond based on the volume of loans.
   Volume of loans less than $49,999,999 require a $50,000 surety bond.
   Loan volumes $50,000,000 up to $249,999,999 require a $100,000 surety bond,
   And loan volumes exceeding $250,000,000 require a $150,000 surety bond.
   The legal name on the surety bond must match the legal name used in the application. A surety bond is required for each license year and will renew on an annual basis.
7. Persons that will have control authority for the business must complete criminal background checks through fingerprinting. In addition to the fingerprinting, any disclosure questions that are answered “yes” must have a written explanation for each question.
8. The business must have an owner, qualifying or managing individual that has a minimum of three years of financial services or related experience.

How Much Will This Bond Cost?

The premium that you pay for a South Carolina Mortgage Lender or Servicer Surety Bond is dependent on credit. Premiums start at .75% of the bond amount with good credit. Bond amounts over $50,000 will require business and personal financial statements.

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