S.C. Reg. 28-400(C)(2) requires mortgage brokers to keep on file mortgage broker agreements entered into with borrowers. Mortgage broker agreements are required to contain certain disclosures and terms, such as the amount of any fees, the nature of the services the broker provides to the borrower, and whether a loan may be co-brokered.
DocuTech has been providing Cx3841 (Loan Brokerage Agreement) for loans secured by property in South Carolina. Although this document is compliant with South Carolina law, it has been decided Cx3525 (SC Mortgage Broker Fee Agreement for Financial Services), which is a duplicate of the model form published by the South Carolina Department of Consumer Affairs (http://www.scconsumer.gov/licensing/mortgage_brokers/forms.htm; “Fee Agreement”), is sufficient for this purpose. Cx3525 not only fulfills the requirements of S.C. Reg. 28-400(C)(2), but also S.C. Code Ann. §§37-23-45, 37-23-75 & 40-58-78(A), which further impose requirements and restrictions on broker agreements.
Cx3841 will still be used in other states (e.g. Virginia and Washington).
These changes will take effect on November 2, 2012. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
October 25, 2012