Current Status Introducing Body:House Bill Number:4514 Primary Sponsor:Quinn Type of Legislation:GB Subject:Mortgage loan brokers, finance charges Residing Body:House Computer Document Number:CYY/18876.SD Introduced Date:Mar 04, 1992 Last History Body:House Last History Date:May 21, 1992 Last History Type:Continued Scope of Legislation:Statewide All Sponsors:Quinn Type of Legislation:General Bill
Bill Body Date Action Description CMN
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4514 House May 21, 1992 Continued
4514 House May 20, 1992 Debate adjourned
4514 House May 05, 1992 Objection withdrawn by
Representative
4514 House Apr 29, 1992 Objection by Representative
4514 House Apr 15, 1992 Committee Report: Favorable 26
with amendment
4514 House Mar 04, 1992 Introduced, read first time, 26
referred to Committee
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COMMITTEE REPORT
April 15, 1992
H. 4514
S. Printed 4/15/92--H.
Read the first time March 4, 1992.
To whom was referred a Bill (H. 4514), to amend Section 37-3-202, Code of Laws of South Carolina, 1976, relating to additional charges which a lender may receive in connection with a consumer loan not considered finance charges, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION 1. The 1976 Code is amended by adding:
"Section 40-58-75. Before a mortgage loan broker and a borrower may enter into a binding commitment regarding a mortgage loan which binds either party to complete the transaction, the mortgage loan broker must notify each existing mortgage holder of record regarding the real property which shall be the security of the mortgage loan of the intent of the parties to enter into such a binding commitment. The notification to each mortgage holder of record must be signed by the mortgage loan broker and the borrower and must be furnished to each mortgage holder of record at least seven days before the binding commitment may be entered into.
If such notification is not provided to each mortgage holder of record in the manner required by this section, the mortgage loan broker, upon demand by the administrator, must remit to the administrator any brokerage fee he received from the mortgage loan which must then be remitted by the administrator to the borrower as compensation to him for the violation of this section by the mortgage loan broker. Additionally, a binding commitment entered into between a mortgage loan broker and a borrower where the notification required by this section was not provided is voidable at the option of the borrower."
SECTION 2. This act takes effect upon approval by the Governor./
Renumber sections to conform.
Amend title to conform.
THOMAS C. ALEXANDER, for Committee.
TO AMEND SECTION 37-3-202, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ADDITIONAL CHARGES WHICH A LENDER MAY RECEIVE IN CONNECTION WITH A CONSUMER LOAN NOT CONSIDERED FINANCE CHARGES, SO AS TO DELETE FEES AND CHARGES PAID TO PERSONS REGISTERED AS MORTGAGE LOAN BROKERS, AND TO ADD SECTION 37-3-211 SO AS TO PROVIDE THAT FEES AND CHARGES PAID TO PERSONS REGISTERED AS MORTGAGE LOAN BROKERS ARE CONSIDERED FINANCE CHARGES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 37-3-202(1)(f) of the 1976 Code is deleted.
SECTION 2. The 1976 Code is amended by adding:
"Section 37-3-211. Fees and charges paid to persons registered as mortgage loan brokers pursuant to Chapter 58 of Title 40 are considered finance charges within the meaning of this chapter."
SECTION 3. This act takes effect upon approval by the Governor.