FOR AN ACT ENTITLED, An Act to exempt certain persons from the requirement to license as a mortgage loan originator.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That § 54-14-20.1 be amended to read as follows:
    54-14-20.1. The following are exempt from the requirement of obtaining a mortgage loan originator license:

            (1)    Any individual who offers or negotiates terms of a mortgage loan with or on behalf of an immediate family member of the individual;

            (2)    Any individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual's residence; or

            (3)    A licensed attorney who negotiates the terms of a mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, mortgage brokerage, mortgage broker, or other mortgage loan originator or by any agent of the lender, mortgage broker, or other mortgage loan

originator Any individual who offers or negotiates terms of three or less nonresidential mortgage loans in a twelve month period.
    Section 2. That chapter 54-14 be amended by adding thereto a NEW SECTION to read as follows:

    Any attorney licensed in this state performing activities that come within the definition of a mortgage loan originator, is not required to be licensed as a mortgage loan originator if such activities are:

            (1)    Considered by the South Dakota Supreme Court to be part of the authorized practice of law in South Dakota;

            (2)    Carried out within an attorney-client relationship; and

            (3)    Accomplished by the attorney in compliance with all applicable laws, rules, and standards of professional conduct.