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:

  1. The form must be provided within 3 days of application;
  2. Licensees must demonstrate consumer involvement in the process of choosing an attorney for the loan closing;
  3. The consumer’s preference must be determined and documented prior to closing; and
  4. 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.

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