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#2046684 - 10/28/15 04:35 PM Regulatory Agency Disclosure
BFaith75 Offline
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Good Afternoon,

What is the appropriate agency to disclose on the "South Carolina Regulatory Agency to Receive Borrower Complaints" disclosure required by S.C. code 37-23-70(D)? Should it be the SC Department of Consumer Affairs or the entity that directly regulates the institution, such as the OCC, FRB, or CFPB?

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#2046832 - 10/29/15 11:19 AM Re: Regulatory Agency Disclosure BFaith75
Cowboys Fan Offline
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SC
Our compliance dept says it 's the regulator (FDIC in our case).
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#2047333 - 10/30/15 06:53 PM Re: Regulatory Agency Disclosure Cowboys Fan
BFaith75 Offline
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Does this statute apply to nationally chartered banks?

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#2047343 - 10/30/15 07:23 PM Re: Regulatory Agency Disclosure BFaith75
Cowboys Fan Offline
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SC
Can't help you with that one - we're state chartered.
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#2047360 - 10/30/15 08:01 PM Re: Regulatory Agency Disclosure BFaith75
BFaith75 Offline
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Thanks for your input. Does anyone else have thoughts about the applicability of this article to nationally chartered banks?

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#2047388 - 10/30/15 09:21 PM Re: Regulatory Agency Disclosure BFaith75
SeekingKnowledge Offline
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SeekingKnowledge
Joined: Jun 2014
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SC
Per the SC Dept of Consumer Affairs website, they are the regulator charged with overseeing that particular statute. You may want to check with them for an answer to your question.

SCDCA Webpage

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#2047415 - 11/01/15 12:51 AM Re: Regulatory Agency Disclosure BFaith75
Rocky P Offline
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Posts: 7,378
Florida
It may not apply to banks, if you read the definitions.

LAW - 37-23-70 D "(D) At the time of application for a mortgage loan, the mortgage broker, originator, or employee shall provide the borrower with a document specifying the agency designated to receive complaints or inquiries about the origination and making of the loan, with the telephone number and address of the agency. The consumer shall sign a copy of the document acknowledging receipt of this disclosure and the copy must be maintained in the files of the mortgage broker or originator."

Definition of Mortgage Broker - 37-23-70 (3) "Broker" or "mortgage broker" means a person or organization in the business of soliciting, processing, placing, or negotiating mortgage loans for others or offering to process, place, or negotiate mortgage loans for others. A broker or mortgage broker also includes a person or organization who brings borrowers or lenders together to obtain mortgage loans or renders a settlement service as described in 24 C.F.R. Part 3500.2(a)(16)(ii).

Definition of Originator - 37-23-70 (12) "Originator" or "loan originator" means an employee of a mortgage broker or mortgage lender whose primary job responsibilities include direct contact with or informing loan applicants of the rates, terms, disclosure, or other aspects of the mortgage. It does not mean an employee whose primary job responsibilities are clerical in nature, such as processing the loan.

Definition of Mortgage Lender 37-23-70 (10) "Lender" includes, but is not limited to, a mortgage broker originating a loan in a tablefunded loan transaction in which the broker is identified as the original payee of the note.
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#2047967 - 11/04/15 04:25 PM Re: Regulatory Agency Disclosure Rocky P
BFaith75 Offline
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Thank you for the response! This is very interesting. This section speaks a great deal about litigation. Do you know of any court cases that might support this view?

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#2048008 - 11/04/15 05:36 PM Re: Regulatory Agency Disclosure BFaith75
Rocky P Offline
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Posts: 7,378
Florida
I do not, but 2 sources.
SC Bankers Association - I believe that Neil Rashley is their state/federal liaison and an attorney. If you are a member, see if you can contact their attorney for an interpretation. It had been John Moore with Nelson Mullins. If there is a law on the books, John probably helped write it.
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#2048416 - 11/06/15 03:13 PM Re: Regulatory Agency Disclosure BFaith75
BFaith75 Offline
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Posts: 105
Thanks for your input!

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#2065426 - 02/23/16 12:19 AM Re: Regulatory Agency Disclosure BFaith75
Toto Too Offline
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Joined: Nov 2004
Posts: 103
Southeast
Did anybody ever confirm if this disclosure is required for "banks"?
Thank you,
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#2095224 - 08/25/16 02:50 PM Re: Regulatory Agency Disclosure BFaith75
Antilles Offline
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Antilles
Joined: Jan 2007
Posts: 212
Southern US
Bump - was it ever confirmed that this is required for Banks?
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#2101739 - 10/04/16 10:27 PM Re: Regulatory Agency Disclosure BFaith75
luvs2trvl Offline
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Texas
We just finished a SC state exam. However - we are a mortgage lender not a bank
They made us correct our disclosure to the following address:

South Carolina Board of Financial Institutions, Consumer Finance Division
1205 Pendleton Street Suite 306
Columbia SC 29201
Phone 803-734-2020
Web: www.consumerfinance.sc.gov/complaints

You should also "be aware" if you close any mortgage transactions, you must document borrower's selection of settlement attorney.

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#2246687 - 12/17/20 07:00 PM Re: Regulatory Agency Disclosure BFaith75
dutchbltz Offline
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Are other SC banks providing this notice? It seems to me that it should be provided - the client is applying for a mortgage loan.... but I'm new to the state and could be misinterpreting something here?

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#2246701 - 12/17/20 10:34 PM Re: Regulatory Agency Disclosure BFaith75
rlcarey Online
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Galveston, TX
I am not sure that I see an out. Depends on what you think the definition of a "mortgage lender" might be. The is no specific exclusion for financial institutions.
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#2246726 - 12/18/20 04:52 PM Re: Regulatory Agency Disclosure BFaith75
Monster Offline
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Posts: 455
LaserPro, AllRegs, Encompass, etc. all seem to think the form should be generated for SC mortgages/HELOCs, might just be a conservative approach since the definition isn't clear.

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