South Carolina Mortgage Broker Bonds Explained
Operating as a mortgage broker in South Carolina requires that you go through a licensing procedure with state authorities. As a part of this process, you have to obtain a mortgage broker bond.
The goal of the bonding requirement is to function as a safety mechanism, protecting your customers and the state. It guarantees your legal compliance.
In essence, your bond works like a three-party contractual agreement. The principal is your mortgage business. The obligee is the South Carolina Department of Consumer Affairs that sets the licensing requirements. The surety is the third entity, which provides you with the bonding.
Questions about Mortgage Broker Bonds in South Carolina
In which cases is this bond necessary?
One of the main South Carolina mortgage broker license requirements that you have to satisfy is to post a $25,000 surety bond. It ensures you will follow Chapter 58, Title 40 of the South Carolina Code of Laws.
The Nationwide Multistate Licensing System & Registry (NMLS) handles the licensing procedure. However, the responsible body in the state is the Department of Consumer Affairs.
How much does it cost to get bonded?
In order to obtain a South Carolina mortgage broker license, you have to provide a $25,000 bond. This is the bond amount. However, you only have to pay a small percentage of it, which is called the bond premium. It is formulated on the basis of your personal and business finances.
The surety that you apply with has to consider a range of factors to determine your exact surety bond cost. They include your personal credit score, company finances, and any fixed and liquid assets that you demonstrate. The premium depends on the level of the bonding risk that you pose. Thus, if your finances are in good shape, you can expect a lower price.
|South Carolina Mortgage Broker Bond Cost Based on Credit Score|
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Mortgage loan broker bond||$25,000||$125-$312.5||$187.5-$375||$500-$1,250||$1,250-$2,500|
What if I'm struggling with bad credit?
In order to offer a bonding option for applicants with low credit scores, tax liens, bankruptcies, and civil judgments, Lance Surety Bonds runs its Bad Credit Surety Bonds program.
The premiums are between 5% to 10%, as the risk involved is higher. Due to our close partnerships with a number of A-rated, T-listed surety companies, we can offer you a top bonding rate that best matches your particular case.
How do I get my bond?
You can start your bonding process by filling out our online application form (it takes 5min). Then you need to provide your full paperwork, so we can issue an exact quote. If you're happy with it, you can purchase the bond straight away. We will send you both a digital and a paper version afterwards.
If you need more details on how bonding works, you can delve into our elaborate How to Get Bonded guide.
For further questions, you can contact us at (877) 514-5146.
How are bond claims handled?
If you fail to follow applicable South Carolina laws and a party suffers damages as a result, they can file a claim against your mortgage broker bond. The maximum compensation they can seek is up to the bond amount, which is $25,000.
The case is investigated and if proven, you are liable to cover the reimbursement. Your surety may pay the costs initially, but you need to fully repay it soon after. Thus, claims remain your responsibility, so they can harm your business substantially.
Still Have Questions? Check Our FAQ Pages
What Our Clients Have To Say?
Kimberlee AblesQuick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Andrew PoincotLong story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
Margie MartinezWe decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!