South Dakota Enacts Provisions Regarding Exemptions from Licensure for Nonresidential Mortgage Loans
The South Dakota legislature amended provisions for the licensure of nonresidential mortgage loans. These provisions will become effective on July 1, 2017.
Firstly, the provisions have amplified the requirements for certain exemptions to the aforementioned licensure requirements. Previously, the exemption from licensure was capped at three annual loans. However, the provisions amplified this cap for any individual who before or after the effective date of the Act originates, sells or services to five or fewer nonresidential mortgage loans in a twelve month period. The collective value of the loans has also been set as an exemption parameter. Namely, the loans may not exceed $4 million dollars. The exemption will be applied jointly to every entity in which a person has an equity interest, whether or not that individual had direct actions with the handling of the loan.
Secondly, the provisions delineated reporting requirements. Any individual who is exempted by the provisions shall report annually to the Division of Banking of the Department of Revenue and Regulation no later than December 31, 2017, and every subsequent year in which a nonresidential mortgage loan was originated, sold or serviced. This annual report must meet certain informational requirements: (1) name and address of the individual who originated, sold or serviced the loan; (2) the number of nonresidential mortgage loans originated, sold or serviced in the preceding calendar year; and (3) the total balance of all nonresidential mortgage loans originated, sold or serviced.
For your convenience, there is a full version of the legislation: