South Carolina Amends Provisions for Mortgage Lending Licensing
South Carolina has enacted provisions related to mortgage lending licensing, effective September 18, 2017.
The act defines a “loan correspondent” as “a person engaged in the business of making mortgage loans as a third party originator and who does not engage in all three of the following activities with respect to each mortgage loan: (a) underwrite the mortgage loan written by their employees; (b) approve the mortgage loan; and (c) fund the mortgage loan utilizing an unrestricted warehouse or credit line.”
A person seeking a license must, in addition to all other requirements, have satisfactorily completed pre-licensing education of at least twenty hours, including a minimum of three hours on South Carolina laws and regulations.
License applicants are also subject to a national criminal record check, supported by fingerprints, by the Federal Bureau of Investigation (FBI). Results of these checks are reported to the commissioner, and “the Nationwide Mortgage Licensing System and Registry is authorized to retain the fingerprints for certification purposes and for notification of the commissioner regarding subsequent criminal charges which may be reported to the FBI.”
The Act requires that as a condition of license renewal, a licensee must complete a minimum of eight hours of continuing professional education annually, “which shall include at least one hour on South Carolina laws and regulations, for the purpose of enhancing professional competence and responsibility.” This continuing professional education must be reported annually to the commissioner.
Full text of South Carolina Senate Bill 366
Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act)
South Carolina has amended Regulation 15-64 to comply with the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act), and with rules issued by the Consumer Financial Protection Bureau, effective immediately.
The Regulation has been amended to reflect that the Nationwide Mortgage Licensing System & Registry (NMLS&R) unique identifier of the Mortgage Loan Originator must also be placed on the Promissory Note or Loan Contract and the Security Agreement as well as any other documents required by 12 CFR 1026.36(g). Only the unique identifier of the licensed Mortgage Lender/Servicer is required to be displayed on all other mortgage loan forms.
The Mortgage Call Report required by Section 37-22-220 now specifically must disclose “all residential mortgage origination and/or servicing activity conducted in the state of South Carolina.” The Commissioner may, at his or her discretion, accept a report filed through the NMLS&R in lieu of the annual report required by this section.
Additionally, the NMLS&R “may be used to store the List required by Section 37-22-210(A) and the Roster required by Section 37-22-210(B) in lieu of the Commissioners’ office so long as the information may be provided in a reasonable time upon request.”
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