South Carolina Origination Reference Guide
- Kacey Olson
Owned by Kacey Olson
Aug 30, 2017
4 min read
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| Citation | Topic | Requirement |
| Consumer Protection Code / S.C. Code Ann. §37-3-303 | Notice to Cosigner | Must be provided at or prior to a co-signer becoming obligated on a loan and must be a separate document. |
| Consumer Protection Code / S.C. Code Ann. §37-23-40 | Approved High Cost Home Loan Counselors | The lender of a high-cost home loan may not make a high-cost home loan without first receiving a written certification from a counselor approved by the State Housing Finance and Development Authority that the borrower has received counseling on the advisability of the loan transaction and the appropriate loan for the borrower. The Department of Consumer Affairs will specify the information that must be provided by the lender and reviewed by the consumer credit counselor. |
| Reverse Mortgages / S.C. Code Ann. §29-4-60 | Borrower Counseling | A lender may not accept an application for a reverse mortgage until the lender has obtained from the South Carolina State Housing Finance and Development Authority the content and format of a statement regarding the advisability and availability of independent information and counseling services on reverse mortgages. Additionally, a reverse mortgage commitment may not be made by a lender unless the borrower attests in writing that the borrower received such statement from the lender at the time of the initial loan inquiry. |
Borrower Reasonable Tangible Net Benefit Worksheet (Optional Form) | (A) A lender may not engage knowingly or intentionally in the unfair act or practice of "flipping" a consumer home loan. This provision applies regardless of whether the interest rate, points, fees, and charges paid or payable by the borrower in connection with the refinancing exceed those thresholds specified in Section 37-23-20(15). | |
| Consumer Protection Code / S.C. Code Ann. §37-10-102 | Choice of Attorney and Insurance Agent Disclosure | Must be provided on or with an application or delivered or mailed no later than 3 business days after an application is received or prepared. |
| Licensing of Mortgage Brokers Act / S.C. Code Ann. §40-58-70(5) | Collection of Fees | A person may not, in the course of a mortgage loan transaction, collect any allowable third-party fees (excluding appraisals or credit reports) before a conditional mortgage loan commitment is obtained by the mortgage broker. |
| Doe v. McMaster, 585 S.E. 2d 773, 777 (S.C. 2002) | Document Preparation and Loan Closings | Preparation of loan documents without attorney supervision constitutes the unauthorized practice of law. |
Licensing of Mortgage Brokers Act / S.C. Code Ann. §40-58-75 | Mortgage Broker Fee Agreement | A mortgage broker must provide a Mortgage Broker Fee Agreement that discloses the total estimated charges to the borrower for the mortgage loan and an itemization of the charges provided as required under federal law within 3 business days of the receipt of an application for a mortgage loan. |
NMLS Unique Identifier | A licensee must clearly display the unique identifier assigned by the Nationwide Mortgage Licensing System on all mortgage loan forms, solicitations, or advertisements including business cards or websites and any other documents furnished in connection with a mortgage loan transaction. See also LMBA S.C. Code Ann. §40-58-130. The Nationwide Mortgage Licensing System & Registry (NMLS&R) unique identifier for the licensed Mortgage Lender/Servicer, the licensed Branch Office and the licensed Mortgage Loan Originator must be displayed on all mortgage loan applications. The NMLS&R unique identifier of the Mortgage Lender/Servicer and the 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. | |
| Consumer Protection Code / S.C. Code Ann. §37-3-202(2) | Optional Insurance Disclosure (Optional Form) | Must be provided to each borrower separately if optional insurance is purchased in connection with a loan. |
| Consumer Protection Code / S.C. Code Ann. §37-23-70 | Regulatory Agency to Receive Borrower Complaints Disclosure | This disclosure must be provided at application. A “consumer home loan” is a loan in which: (1) the borrower is a natural person; (2) the debt is incurred by the borrower primarily for personal, family, or household purposes; and (3) the loan is secured by a mortgage on real estate upon which is located or is to be located a structure designed principally for occupancy of from 1 to 4 families and that is or is to be occupied by the borrower as the borrower's principal dwelling (S.C. Code Ann. §37-23-20). |
| Consumer Protection Code / S.C. Code Ann. §37-3-202(2) | Right to Choose Insurance Provider | A lender may impose an additional charge on the borrower for insurance against the loss of or damage to the property if the lender furnishes a clear and specific statement in writing to the borrower, setting forth the cost of insurance if obtained from or through the lender and stating that the borrower may choose the person through whom the insurance is to be obtained. |