South Dakota Mortgage Broker Bond

If you want to obtain a South Dakota mortgage broker license, you need to get a surety bond. The amount that you have to provide depends on your yearly loan volume. The bond ensures your compliance with Chapter 54-14 of the South Dakota Codified Law, and any other relevant laws.

The licensing authority is the South Dakota Division of Banking. However, the Nationwide Multistate Licensing System & Registry (NMLS) manages the licensing procedure for mortgage professionals in the state.

As a South Dakota mortgage broker, you have to provide a surety bond in an amount between $25,000 and $50,000. It is set on the basis of your yearly loan origination volume. To get bonded, you need to pay a small percentage of the required amount. It is called the bond premium.

When formulating your exact surety bond cost, your surety scrutinizes your personal credit score, business finances, and any fixed and liquid assets you include in your application. It aims to assess how risky it is to get you bonded. Your premium will be lower if your overall profile is stable.

You can get bonded with Lance Surety Bonds even if your finances are not in the best shape. We have designed our Bad Credit Surety Bonds program for applicants with low credit scores, tax liens, bankruptcies, and civil judgments.

As the bonding risk is higher, the rates you can expect are between 5% to 10%. Nevertheless, you can get a top bonding option with us due to our excellent partnerships with numerous A-rated, T-listed surety companies.

You can launch your bonding process by completing our online application form (it takes 5min). When we receive your full application and documents, we can issue your exact quote. If you’re happy with it, you can buy your bond straight away. Then we’ll send you a digital and a paper version of it.  

Would you like to delve into the details of how bonding works? You can review our in-depth How to Get Bonded guide.

If you have more questions, don’t hesitate to reach us at (877) 514-5146.

You may receive a claim against your surety bond if you fail to follow the legal framework in South Dakota while conducting your mortgage activities. This is the mechanism through which harmed parties can seek fair compensation for suffered damages. The maximum penal sum is the bond amount that you have posted, which is between $25,000 and $50,000.

If the claim is proven, you have to pay the costs. Your surety may do so at first, but as defined in the bond indemnity language, you need to fully reimburse it afterwards. Thus, it is best to avoid claims, as they can be costly and harmful for your business.