54-14-13. License required for mortgage lenders, brokerage, brokers, and loan originators--Identification through nationwide mortgage licensing system and registry--Exemption.

No person may act as a mortgage lender, mortgage brokerage, mortgage broker, or mortgage loan originator in this state or use the title, mortgage lender, mortgage brokerage, mortgage broker, or mortgage loan originator with respect to any property located in South Dakota without first obtaining and maintaining a license according to the requirements of this chapter. Each person shall be licensed or registered, and maintain a unique identifier through the nationwide mortgage licensing system and registry.

The requirements of this chapter, except for the provisions of chapter 10-43 as referenced in § 54-14-30, do not apply to any person who, on, before, or after July 1, 2017, originates, sells, or services five or fewer nonresidential mortgage loans in a twelve-month period as long as the total amount of the loans outstanding does not exceed four million dollars. The exemption under this section applies jointly to every entity in which a person has an equity interest, whether the loan or loans are made by that person or through an entity in which the person holds an equity interest.

Any person exempted by the provisions of this section shall report to the division annually, no later than December thirty-first of 2017, and every subsequent year for any year in which nonresidential mortgage loans are originated, sold, or serviced. The annual report shall contain the name and address of the person who originated, sold, or serviced nonresidential mortgage loans, the number of nonresidential mortgage loans originated, sold, or serviced in the preceding calendar year, and the total balance of all nonresidential mortgage loans originated, sold, or serviced.

Source: SL 2007, ch 279, § 2; SL 2009, ch 251, § 6; SL 2017, ch 207, § 1.



SDLRC - Codified Law 54-14-13 - License required for mortgage lenders, brokerage, brokers, and loan originators--Identification through nationwide mortgage licensing system and registry--Exemption.

54-14-13.1. (See § 54-14-13.3 for effective dates) Mortgage loan originator license--Required findings.

The director may not issue a mortgage loan originator license unless the director makes the following findings:

(1)    The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction. No revocation for which there has been a subsequent formal vacation of the revocation may be considered by the director;

(2)    The applicant has not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court:

(a)    During the seven year period preceding the date of the application for licensing and registration; or

(b)    At any time preceding the date of application, if the felony involved an act of fraud, dishonesty, breach of trust, or money laundering.

No pardon of a conviction may be considered a conviction for purposes of this subdivision;

(3)    The applicant has demonstrated financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this chapter. For purposes of this subdivision, an applicant shows a lack of financial responsibility if the applicant has shown a disregard in the management of his or her own financial affairs. Factors to be considered may include current outstanding judgments, except judgments solely as a result of medical expenses; current outstanding tax liens or other governmental liens and filings; foreclosures within the past three years; or a pattern of seriously delinquent accounts within the past three years;

(4)    The applicant has completed the pre-licensing education requirement provided for by rule pursuant to § 54-14-31;

(5)    The applicant has passed a written test that meets the test requirement provided for by rule pursuant to § 54-14-31; and

(6)    The applicant has met the surety bond requirement as required by § 54-14-24 and provided for by rule pursuant to § 54-14-24.

Source: SL 2009, ch 251, § 7.



SDLRC - Codified Law 54-14-13 - License required for mortgage lenders, brokerage, brokers, and loan originators--Identification through nationwide mortgage licensing system and registry--Exemption.

54-14-13.2. (See § 54-14-13.3 for effective dates) Mortgage loan originator license--Renewal standards.

The minimum standards for license renewal for mortgage loan originators shall include the following:

(1)    The mortgage loan originator continues to meet the minimum standards for license issuance under subdivisions 54-14-13.1(1) to (5), inclusive; and

(2)    The mortgage loan originator has satisfied the annual continuing education requirements provided by rule pursuant to § 54-14-31.

Source: SL 2009, ch 251, § 9.



SDLRC - Codified Law 54-14-13 - License required for mortgage lenders, brokerage, brokers, and loan originators--Identification through nationwide mortgage licensing system and registry--Exemption.

54-14-13.3. Effective dates of §§ 54-14-13.1 and 54-14-13.2.

The effective dates of §§ 54-14-13.1 and 54-14-13.2 are as follows:

(1)    July 31, 2010, for any individual other than an individual described in subdivision (2); and

(2)    December 31, 2010, for any individual licensed as a mortgage loan originator as of July 1, 2009.

Source: SL 2009, ch 251, § 28.



SDLRC - Codified Law 54-14-13 - License required for mortgage lenders, brokerage, brokers, and loan originators--Identification through nationwide mortgage licensing system and registry--Exemption.

54-14-13.4. License required for loan processor or underwriter--Identification through nationwide mortgage licensing system and registry.

No loan processor or underwriter who is an independent contractor may engage in the activities of a loan processor or underwriter unless the loan processor or underwriter obtains and maintains a license under this chapter. Each loan processor or underwriter who is an independent contractor licensed as a mortgage loan originator shall have and maintain a valid unique identifier issued by the nationwide mortgage licensing system and registry.

Source: SL 2009, ch 251, § 13.



SDLRC - Codified Law 54-14-13 - License required for mortgage lenders, brokerage, brokers, and loan originators--Identification through nationwide mortgage licensing system and registry--Exemption.

54-14-13.5. License required for company originating, selling, or servicing nonresidential mortgage loans.

Any company who, for valuable consideration, originates, sells, or services nonresidential mortgage loans, shall apply for, on forms prescribed by the director, and maintain, a mortgage lending license and is subject to the tax as provided in § 54-14-30. The tax required in § 54-14-30 shall be imposed only on those loans funded after December 31, 2009. The requirement of a surety bond as provided in § 54-14-24 does not apply to a company licensed under this section.

Any individual solely employed by or solely acting as an intermediary on behalf of a company licensed pursuant to this section is not required to hold an individual license under this chapter. Any individual acting as an intermediary, on behalf of a company licensed as provided in this section, shall be disclosed to the director during the application process and annually thereafter.

The requirements of registration with the nationwide mortgage licensing system and registry do not apply to any company or its employees or intermediaries licensed pursuant to this section.

Source: SL 2009, ch 251, § 27; SL 2012, ch 252, § 28.