Compliance Corner and Hot Topics
If you’re licensed in South Carolina or about to become licensed, make sure you have robust procedures and controls in place for the Attorney/Insurance Agent Preference Form. This form is a hot topic for South Carolina and a routine citing in an examination. If an examiner identifies issues with providing or completing this form, the state may require the lender to conduct a self-audit of all loans for several years and, where the form doesn’t comply with the rules, require refunds to borrowers for certain settlement/attorney charges. These refunds can add up quick.
There are various requirements for providing and completing the form, including, among others:
- The form must be provided within 3 days of application;
- Licensees must demonstrate consumer involvement in the process of choosing an attorney for the loan closing;
- The consumer’s preference must be determined and documented prior to closing; and
- The attorney chosen must be authorized to practice law in South Carolina.
These are a just few of the requirements. If you’d like more information or help with implementing these requirements, please contact your SCP consultant.