Who requires it
South Dakota Division of Banking — Mortgage licenses
License & permit · South Dakota
South Dakota Mortgage Lender and Broker Bond
South Dakota mortgage lenders, brokerages, brokers, and originators must keep a surety bond under SDCL 54-14-24. That statute sets a $25,000 floor and requires an amount that reflects loan volume. ARSD 20:07:19:07 provides the current schedule: $25,000 when prior-year South Dakota originated, brokered, or serviced volume is under $25 million; $35,000 from $25 million through $100 million; and $50,000 above $100 million. An employed or exclusive-agent originator or broker may be covered by the employer’s bond. Keep the bond active while licensed. The surety may cancel on 30 days’ notice to you and the director. If a claim is paid, file a replacement right away.
Common bond amount
$25,000–$50,000
ARSD 20:07:19:07: <$25M → $25k; $25M–$100M → $35k; >$100M → $50k (prior-year SD originated/brokered/serviced volume).
How you file
File electronically through NMLS on the director-prescribed form
Renewal
Keep the bond active while licensed. The surety must give 30 days’ notice to cancel. If a claim is paid, file a replacement.
Who requires it
Applicants for and holders of South Dakota mortgage lender, mortgage brokerage, mortgage broker, or mortgage loan originator credentials under SDCL chapter 54-14 filing with the Division of Banking through NMLS.
How much is required
Use ARSD 20:07:19:07 against prior-calendar-year South Dakota originated, brokered, or serviced volume, subject to the statutory floor of $25,000. New applicants typically start at the $25,000 tier unless the director directs otherwise.
How to get and file it
Confirm the volume tier, arrange a South Dakota–qualified surety bond on the director-prescribed form, and file electronically through NMLS as the Division of Banking instructs. Keep the bond active for the license term. Raise the amount if your loan volume moves you into a higher ARSD tier. If a claim is filed, the director may require a new bond. If a claim is paid, file a replacement right away.
Cost note
The schedule amount is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Under $25,000,000 prior-year SD volume
- $25,000
- $25,000,001 to $100,000,000
- $35,000
- Over $100,000,000
- $50,000
- MLO / exclusive broker coverage
- Employing licensee’s bond may satisfy the individual requirement
- Cancellation
- Surety may cancel on 30 days’ notice to licensee and director
Official sources
Related resources
Frequently asked questions
Does servicing volume count toward the bond tier?
Yes for the administrative schedule. ARSD 20:07:19:07 measures the dollar amount of mortgage loans originated, brokered, or serviced with respect to South Dakota property in the preceding calendar year.
Do I need a separate bond as an employed mortgage loan originator?
Not if you are an employee or exclusive agent of a chapter 54-14 licensee whose bond already covers you. Otherwise SDCL 54-14-24 still requires coverage in the prescribed amount.
Related South Dakota bond guides
Money Lender Bond
≤ $10,000 + $2,500 per additional license
South Dakota money lenders—including payday and title lenders licensed under chapter 54-4—must file a surety bond with the license application. SDCL 54-4-42 caps the amount at $10,000 for the first license and $2,500 for each additional license. That is a statutory maximum, not a figure we have verified as the amount Banking currently requires in every case. Confirm the exact amount with the Division of Banking for your location count before filing. The bond protects the state and people with claims under chapter 54-4. Some nonprofit and development entities must still be licensed but are exempt from the bond.
Money Transmitter Bond
$100,000–$500,000
Every South Dakota money transmitter must keep security on file with the Division of Banking. SDCL 51A-17-100 sets the amount as the greater of $100,000 or 100% of average daily South Dakota transmission liability for the latest three-month window, capped at $500,000. Firms whose tangible net worth is more than 10% of total assets post a flat $100,000 instead. With the director’s approval, a deposit can replace the bond. File through NMLS and keep the security active for the license year ending December 31. If you already post $500,000, you do not have to keep recalculating average daily liability.
Motor Vehicle Dealer Bond
$5,000–$25,000
South Dakota vehicle and specialty dealers file a surety bond with the Department of Revenue Motor Vehicle Division before the matching dealer license issues. Amounts are $25,000 for vehicle, used-vehicle, or manufactured/mobile-home licenses; $20,000 for boat; $10,000 for emergency-vehicle or for trailers over 3,000 pounds; and $5,000 for motorcycle/off-road or snowmobile. Boat dealers may use one bond for several dealer licenses if the amount covers every license. The bond protects customers if the dealer fails on title, commits fraud, or breaks a lien warranty. Keep a current bond for each license period. If a claim is paid after a judgment, bring the bond back to the required amount. The surety must notify the department in writing of paid claims or cancellations.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a South Dakota application
South Dakota will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-12. This guide is based on verified educational content and official sources.
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