84
th Legislative Session _ 2009
1059sa
On page 1, line 7, of the printed bill, after "entity" insert "that acts as an insurance producer or
receives an insurance commission".
Moved by: Krebs
Second by: Greenfield
Action: Prevailed by voice vote.
MOTION:
DO PASS HB 1059 AS AMENDED
Moved by: Krebs
Second by: Greenfield
Action: Prevailed by roll call vote. (12-0-1-0)
Voting Yes: Blake, Fargen, Greenfield, Jensen, Kirschman, Krebs, Novstrup (David), Nygaard,
Pitts, Solberg, Solum, Rounds
Excused: Dreyer
HB 1060: revise certain provisions regarding the mortgage lender business and to
provide for fees and penalties related thereto.
Presented by: Bret Afdahl, SD Division of Banking
Proponents: Craig Marquardt, SD Association of Mortgage Brokers
Julie Johnson, Absolutely Aberdeen
Opponents: Senator Corey Brown
MOTION:
AMEND HB 1060
1060sb
On page 1 of the printed bill, delete lines 4 to 15, inclusive, and insert:
"
Section 1. That
§
54-14-12
be amended to read as follows:
54-14-12.
Terms used in this chapter mean:
(1)
"Depository institution," the same meaning as provided in 12 U.S.C.
§
1813(c) as of
January 1, 2009, and includes any credit union;
(2)
"Director," the director of the Division of Banking of the Department of Revenue and
Regulation;
(2)
(3)
"Division," the Division of Banking of the Department of Revenue and Regulation;
(4) "Federal banking agencies," the Board of Governors of the Federal Reserve System, the
Comptroller of the Currency, the director of the Office of Thrift Supervision, the National
Credit Union Administration, and the Federal Deposit Insurance Corporation;
(5) "Immediate family member," a spouse, child, sibling, parent, grandparent, grandchild,
stepparent, stepchildren, stepsibling, and adoptive relationship;
(6) "Individual," a natural person;
(3)
(7)
"Licensee," the person holding a license provided by this chapter;
(4)
(8)
"Mortgage lender," any person who, for valuable consideration, originates, sells, or
services mortgages, or holds himself, herself, or itself out as a person who, for valuable
consideration, originates, sells, or services mortgages, other than those exempt pursuant
to § 54-14-21;
(5)
(9)
"Mortgage broker," any person who
, for compensation or gain, acts as an intermediary
between borrower and lender to assist a person in obtaining or applying to obtain a
mortgage loan or holds himself, herself, or itself out as being able to assist a person in
obtaining or applying to obtain a mortgage loan
acts as a mortgage loan originator and has
not less than a ten percent interest in a mortgage brokerage
;
(5A)
(10)
"Mortgage brokerage," any person engaged in placing
mortgage
loans with
investors for a fee, but does not service such loans;
(6)
"Mortgage brokering activities," for compensation, either directly or indirectly, assisting
or offering to assist in the preparation of an application for a mortgage loan on behalf of
a borrower, or negotiating or offering to negotiate the terms or conditions of a mortgage
loan with any person making mortgage loans;
(7)
"Mortgage loan originator," any person acting under the supervision of a licensee and
who, for compensation or gain, takes or receives a mortgage application, assembles
information, and prepares paperwork and documentation necessary for obtaining a
mortgage loan or arranges for a conditional mortgage loan commitment between a
borrower and a lender, or arranges for a loan commitment from a lender. The term,
mortgage loan originator, does not include an employee of a licensee whose job
responsibilities are limited to clerical tasks that do not include processing of mortgage
loans;
(8)
(11)
"Mortgage lending activities," for compensation, either directly or indirectly,
accepting or offering to accept applications for making mortgage loans;
(9)
(12)
"Regional revolving loan fund," any regional revolving loan fund with a service
area of at least five South Dakota counties, a designated staff for loan processing
and servicing, a loan portfolio of at least one million dollars, and which is
governed by a board of directors that meets at least quarterly
;
(13) "Residential mortgage loan," any loan primarily for personal, family, or household use
that is secured by a mortgage, deed of trust, or other equivalent consensual security
interest on a dwelling, as defined in 12 C.F.R.
§
226.2(19), or residential real estate upon
which is constructed or intended to be constructed a dwelling;
(14) "Unique identifier," a number or other identifier assigned by protocols established by the
nationwide mortgage licensing system and registry
.
".
On page 2, delete lines 1 to 24, inclusive.
On page 3, delete lines 1 to 19, inclusive.
On page 4, line 1, after "duties" insert "subsequent to the receipt of an application".
On page 9, line 20, after "broker" insert "
or mortgage brokerage
".
On page 10, line 1, overstrike "or registration".
On page 10, line 7, after "broker" insert "
or mortgage brokerage
".
On page 10, line 17, after "
lender
" insert "
, mortgage brokerage,
".
On page 12, line 24, after "lender," insert "mortgage brokerage,".
On page 13, line 4, after "." Insert "A civil penalty for a series of violations may not exceed
twenty-five thousand dollars.".
On page 14, line 14, after "brokers," insert "
mortgage brokerage,
".
On page 16, line 14, after "lender," insert "mortgage brokerage,".
On page 16, delete lines 23 and 24.
On page 17, delete lines 1 to 4, inclusive.
On page 17, line 15, after "lender," insert "mortgage brokerage,".
On page 18, line 1, remove the overstrikes from "
criminal background checks
".
On page 18, line 1, delete "
and
".
On page 18, delete line 2, and insert "any continuing education requirements, and surety bond
requirements under this chapter
, to the extent that such entity is not involved in originating,
brokering, or providing funds for residential mortgage loans
.".
On page 18, after line 2, insert:
"
Section 26. That
§
54-14-22 be amended to read as follows:
54-14-22.
Any person, including a mortgage loan originator, shall complete the equivalent of
two years of service under the supervision and direction of a licensed mortgage broker
, mortgage
brokerage,
or mortgage lender, or another jurisdiction's equivalent thereof, before that person is
eligible to apply for a mortgage broker's
, mortgage brokerage's,
or mortgage lender's license. No
mortgage broker,
mortgage brokerage,
mortgage lender, or mortgage loan originator is eligible for
a license without such training and experience. The director may promulgate rules pursuant to
chapter 1-26 with regard to such training and experience. Any person licensed as a mortgage broker
or mortgage lender with the director prior to July 1, 2007, is exempt from this requirement.
Section 27. That
§
54-14-25
be amended to read as follows:
54-14-25.
Any person, who without first obtaining a license or registration under this chapter,
engages in the business or occupation of, or advertises or holds the person out as, or claims to be,
or temporarily acts as, a mortgage broker,
mortgage brokerage,
mortgage lender, or mortgage loan
originator in this state is guilty of a Class 2 misdemeanor and may be held responsible for all costs
of prosecution, including restitution.
".
1060sc
In the previously adopted amendment, (1060sb), in Section 26, on line 1, after "person"
overstrike ", including a mortgage loan originator,".
In the previously adopted amendment, (1060sb), in Section 26, on line 5, after "
brokerage,
"
insert "
or
" and after "lender," overstrike "or mortgage loan originator".