SC Mortgage Broker Fee Agreement for Financial Services (Cx3525)
S.C. Reg. 28-400(C)(2) and S.C. Code Ann. §§ 37-23-45, 37-23-75, 40-58-75 & 40-58-78(A) require 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. Cx3525 (SC Mortgage Broker Fee Agreement for Financial Services) is a duplicate of the model form published by the South Carolina Department of Consumer Affairs (found here) for this purpose. The department has updated the model form and we are updating Cx3525 to match. The most significant changes are:
- Updating the paragraph headings to more closely match the model form;
- Minor textual updates;
- Addition of the sentence, “It is also understood that no fee will be charged if either the applicant or lender turns down the loan,” in the “Disclosure of Lender Payments to Broker” section; and
- Updating the borrower complaint section as shown in the model form.
SC Borrower Complaints (Cx4694)
Cx4694 is modeled after page 2 of the Fee Agreement Sample located on the Mortgage Broker Forms portion of the website for the South Carolina Department of Consumer Affairs.
To more closely resemble the updated model form, we are:
- Changing the first sentence to, “The S.C. Department of Consumer Affairs is designated to receive complaints or inquiries about the origination and brokering of your mortgage. You may make a complaint to the agency by mail, telephone, or online.”;
- Modifying the address labels;
- Updating the street and mailing addresses;
- Updating the phone number;
- Adding the website for consumer complaints; and
- Inserting “Signatures” above the signature lines.
These changes will be available on February 27, 2016. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.