Cx3848 is provided pursuant to S.C. Code Ann. §§ 37-3-404(2) & 37-10-102(a) and is a duplicate of the model “Attorney/Insurance Preference” form published by the South Carolina Department of Consumer Affairs on their website (https://www.consumer.sc.gov/Regulatory/programs/MortgageBroker/Pages/MortgageBrokerForms.aspx).
This form is divided into two sections, each informing the consumer of their right to their own attorney and insurance agent. These two subsections are further subdivided so that the consumer can either: (a) list the name of their chosen attorney or agent; or (b) explicitly stating that they have selected an attorney or agent from a list provided by the broker or lender. The borrower must complete and sign the subsection that they choose.
According to Franzen and Salzano, P.C. (see https://www.franzen-salzano.com/2018/08/14/spring-summer-2018-hot-topics-south-carolina-prowl-regarding-adherence-attorney-insurance-preference-requirment/), the Department of Consumer Affairs is requiring the form to be properly completed by the consumer in order to ascertain that the broker or creditor did, in fact, allow the borrower to choose their own attorney.
When Cx3848 is provided electronically through SoleX, it is possible for the consumer to sign the document without completing the form. We are currently working on functionality to force the borrower to complete the form before signing it, to mitigate any issues arising from the Department’s guidance. In the interim, we will be configuring Cx3848 to be “ink sign only” so that the borrower receives a physical disclosure of their rights and must complete the form by hand.
This change is effective immediately. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.