SD mortgage lender bonds.
From $100. Enter your amount.

A South Dakota mortgage lender licensed under SDCL 54-14-13 has to submit a surety bond with its application and maintain it at all times. Section 54-14-24 sizes the bond to the total dollar amount of loans originated by the licensee and its employees and agents, with a $25,000 floor. The premium is 0.6% of the bond amount, $100 minimum, your exact price appears at the application, and the bond issues the moment you pay. Any credit screen is a soft pull only — it never affects your score.

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Required to hold a South Dakota mortgage lender license under SDCL 54-14-24

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Amount reflects your origination volume — never less than $25,000

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0.6% of the bond amount, $100 minimum — exact price at the application, issued the moment you pay

0.6% rate$100 minimumInstantissuance at checkoutSoft pullnever a hard inquiry

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How it works

Three steps. One sitting.

Mortgage lender bonds are amount-priced, not queue-priced. Here is the entire process:

NOW · ONLINE

Apply online

Business details, your bond amount, an effective date, and a term. That is the entire application, and any credit screen is a soft pull that never shows as a hard inquiry.

INSTANTLY

Pay & e-sign

The premium is 0.6% of the bond amount with a $100 minimum, so your exact price is on screen before you pay — and the bond issues the moment you do.

SAME DAY

File through NMLS

Your executed bond and power of attorney arrive by email, ready to upload with your mortgage lender license application or renewal in NMLS. Wet-ink original mailed on request.

About this bond

What it is and who needs it.

What the bond actually guarantees

South Dakota licenses mortgage lenders — companies that make or fund residential mortgage loans — through the Division of Banking under SDCL 54-14-13, with residential applications filed in the nationwide mortgage licensing system. The bond is not a post-approval formality: SDCL 54-14-24 requires it to be submitted with the application and maintained for the life of the license.

The amount tracks your book. The statute sets it at an amount that reflects the total dollar amount of loans originated by the licensee and the licensee's employees and agents, and never below $25,000 — so a lender that grows its origination volume can be asked to increase the bond.

It is a three-party arrangement: you (the principal), the surety carrier, and the State of South Dakota (the obligee), with injured borrowers as protected parties. The bond is conditioned on faithful performance under chapter 54-14 and on paying amounts due while it is in force. It is not insurance for you — if the surety pays a claim, you repay the surety and must file a replacement bond immediately. We track the term and send renewal notices 60 and 30 days out.

SDCL 54-14-24Section 54-14-24 of the South Dakota Codified Laws requires each mortgage lender, mortgage brokerage, mortgage broker, and mortgage loan originator to submit with any application, and maintain at all times, a surety bond in an amount that reflects the total dollar amount of loans originated by the licensee and the licensee's employees and agents, but not less than $25,000. The bond must be issued by a surety qualified in South Dakota, run in favor of the state and injured parties, and be conditioned on faithful performance under chapter 54-14 and on payment of amounts due to the state or another person while the bond is in force. Aggregate liability is capped at the bond amount, either party may cancel on thirty days' notice, and a replacement bond must be filed immediately after any recovery.

You need this bond if you're

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Applying for a South Dakota mortgage lender license — the bond goes in with the application

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Renewing a mortgage lender license with the Division of Banking through NMLS

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Increasing your bond after growth in the dollar volume of loans you originate

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Replacing a bond that was cancelled, or filing a replacement after a claim recovery

One application, issued instantly.

These are the actual issuing fields — business details, the bond amount, an effective date, and a term. That is the entire application.

Start the application →

FAQ

Common questions.

How much is the South Dakota mortgage lender bond?The premium is 0.6% of the bond amount with a $100 minimum. At the $25,000 statutory floor that lands at the $100 minimum; larger volume-based amounts price off the same 0.6% rate. Your exact price appears at the application, before you pay.

How does South Dakota set my bond amount?SDCL 54-14-24 sets it at an amount reflecting the total dollar amount of loans originated by you, your employees, and your agents, with a $25,000 minimum. Use the amount stated on your Division of Banking requirement or NMLS record.

Do I pay the bond amount?No. You pay the premium — 0.6% of the bond amount, $100 minimum. The bond amount is the surety’s maximum liability if a valid claim is made, not a deposit, and nobody holds your money.

Is there a credit check?If a credit screen runs on this bond, it is a soft credit pull only — never a hard inquiry, and it never affects your score. The 0.6% rate with the $100 minimum holds either way.

What happens if a claim is paid on my bond?You repay the surety, and SDCL 54-14-24 requires you to file a replacement bond immediately so the license stays continuously bonded. Aggregate surety liability can never exceed the bond amount.

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Other South Dakota bonds.

Mortgage lender bond, issued today.

0.6% of the bond amount, $100 minimum, issued the moment you pay. Free until issued.

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