South Dakota has passed SB165, which requires loan officers to be licensed as Mortgage Brokers if brokering and licensed as loan originators if working for a direct lender The bill is effective December 1, 2007.
Mortgage Lenders
Requires current licensees to have a $25,000 surety bond by August 31, 2007 and for new licensees it is a requirement with the application.
Mortgage Lenders must employ licensed loan originators
Loan Originators
$150 initial, $44 for background check, $75 annual renewal (Dec 31st)
Licenses are not transferable between employers
Registration requires background check
Must have 2 years experience in the industry
9 hours of CE due every year – 1st period is 7/1/07 thru renewal time in 2008
Mortgage Brokers
There are no Mortgage Broker companies, just individuals (if you are a lender that brokers in addition to lending, you will need to license your Loan Originator’s as Mortgage Brokers instead of Loan Originators
$500 initial, $350 annual renewal (Dec 31st)
License can be transferred to another employer
$25,000 surety bond is required
Must file a Bank Franchise Tax Return with the SD Dept of Revenue
2 years experience in the industry
9 hours of CE due every year – 1st period is 7/1/07 thru renewal time in 2008