A broker applicant must post and maintain a South Carolina mortgage broker bond in an amount determined by the Administrator of Consumer Affairs, that is based on the total dollar amount of mortgage loans originated in a calendar year. Pursuant to SC SECTION 40-58-20, “Acting as a mortgage broker” means to act for compensation by: (i) soliciting, processing, placing, or negotiating a mortgage loan for a borrower from a mortgage lender or depository institution or offering to to do the same, (ii) engaging in tablefunding of a mortgage loan, or (iii) acting as a loan correspondent, as that term is defined in 24 C.F.R. Part 202 (HUD Regs.). The South Carolina mortgage broker bond and licensing is required whether the broker’s actions are conducted by telephone, by electronic means, by mail, or in person. Acting as a mortgage broker also includes bringing a borrower and lender together to obtain mortgage loan or rendering a settlement service as described in 12 U.S.C. 2602(3) and 24 C.F.R. Part 3500. 2(b). The formula for determining the amount of the South Carolina mortgage broker bond is as follows:
(1.) For a dollar volume of mortgage loans from $0 to $49,999,999, a mortgage broker bond of $25,000,
(2.) For a dollar volume of mortgage loans from $50,000,000 to $99,999,999, a mortgage broker bond of $40,000,
(3.) For a dollar volume of mortgage loans greater than $100,000,000, a mortgage broker bond of $55,000.
*In no case will the South Carolina mortgage broker bond be less than the amount of twenty-five thousand dollars. The surety bond must be executed by a surety company with a certificate of authority from the South Carolina Department of Insurance and in a form satisfactory to the Administrator of Consumer Affairs. The obligation must be executed in favor of the Administrator for the use of the State for the recovery of expenses, fines, and/or fees levied pursuant to the mortgage broker law and for consumers who have losses or damages as a result of noncompliance with the same. The full amount of the South Carolina mortgage broker bond must be in effect at all times. Unless a new surety bond has been filed with the Administrator before the termination of the previous bond, cancellation of the bond by surety also terminates the broker’s license. In the event that the license expires based on bond cancellation, all broker activity must cease and the broker must apply for a license again. The South Carolina mortgage broker bond is a STATE obligation however like most jurisdictions the broker must apply for his or her authority through the ‘Nationwide Mortgage Licensing System’ (NMLS) and file the bond through that system as well. South Carolina surety leader, Surety One, Inc. is a specialist in the bonding needs of the mortgage and financial services sector. We can service both the surety and fidelity bond needs of mortgage professionals in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Visit us at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email us at Underwriting@SuretyOne.com for a South Carolina mortgage broker bond application or information on ANY surety bond need.