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TO AMEND SECTION 40-58-70, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CERTAIN PROHIBITED ACTIVITIES OF MORTGAGE LOAN BROKERS, SO AS TO PROVIDE THAT A MORTGAGE LOAN BROKER MAY NOT FAIL TO PAY FOR CERTAIN APPRAISAL SERVICES, OR ATTEMPT TO INFLUENCE CERTAIN REAL ESTATE APPRAISALS BY COERCION, EXTORTION, OR BRIBERY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 40-58-70 of the 1976 Code is amended by adding new items at the end to read:
"(7) fail to promptly pay when due reasonable fees to a licensed appraiser for appraisal services that are:
(a) requested from the appraiser in writing by the mortgage loan broker or an employee of the mortgage loan broker; and
(b) performed by the appraiser in connection with the origination or closing of a mortgage loan for a customer of the mortgage loan broker; or
(8) influence or attempt to influence through coercion, extortion, or bribery, the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan. Nothing in this subdivision shall be construed to prohibit a mortgage loan broker from asking the appraiser to do one or more of the following:
(a) consider additional appropriate property information;
(b) provide further detail, substantiation, or explanation for the appraiser's value conclusion;
(c) correct errors in the appraisal report."
SECTION 2. This act takes effect upon approval by the Governor.
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