This document is provided pursuant to the provisions of S.C. Code Ann. § 37-10-102, which requires the following (in relevant part):
“Whenever the primary purpose of a loan that is secured in whole or in part by a lien on real estate is for a personal, family or household purpose:
(a) The creditor must ascertain prior to closing the preference of the borrower as to the legal counsel that is employed to represent the debtor in all matters of the transaction relating to the closing of the transaction and except in the case of a loan on property that is subject to the South Carolina Horizontal Property Act (Section 27-31-10, et seq.) the insurance agent to furnish required hazard and flood property insurance in connection with the mortgage and comply with such preference.
The creditor may comply with this section by:
(1) including the preference information on or with the credit application so that this information shall be provided on a form substantially similar to a form distributed by the administrator; or
(2) providing written notice to the borrower of the preference information with the notice being delivered or mailed no later than three business days after the application is received or prepared. If a creditor uses a preference notice form substantially similar to a form distributed by the administrator, the form is in compliance with this section.”
The South Carolina Department of Consumer Affairs publishes such a form on their website (available at https://www.consumer.sc.gov/Documents/Legal/Mortgage_Brokers/AttorneyInsurancePreferenceForm.pdf). Cx3848 is a substantial copy of this form.
We are revising Cx3848 to more closely align with the model form. In addition, we will be configuring the document so that the only selections which will be filled out in each section will be the ones chosen by Fields # 6611 (“Borrower Will Select Closing Attorney/Agent”) and # 81257 (“Borrower Will Select Insurance Agent”). If such fields are not used, then all selections may be filled out (based on the data submitted by the LOS) and all signature areas will require signing.
This update will be in effect on January 19, 2017. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.