S.D. Admin. R. 20:07:19:08

Current through Register Vol. 51, page 67, December 16, 2024

Section 20:07:19:08 - Records required to be kept - Duration

The following records shall be kept for a period of at least five years, and shall be available for inspection, examination, and copying by the division:

(1) A record of all cash, checks, or other monetary instruments received in connection with each mortgage loan application showing the identity of the payor, date received, amount, and purpose;

(2) A record showing a sequential listing of checks written for each bank account relating to the licensee's business as a mortgage broker or mortgage lender, showing at least the payee, amount, date, and purpose of payment, including identification of the loan to which it relates, if any. The licensee shall reconcile the bank accounts monthly;

(3) A file for each mortgage loan application that contains, as applicable, the applicant's name, date of application, name of person taking the application, HUD-1 Settlement Statement, copies of all agreements or contracts with the applicant, including any commitment and lock-in agreements, copies of any appraisals conducted, and all disclosures required by state and federal law signed by the borrower;

(4) Copies of all contracts, agreements, and escrow instructions to or with any depository;

(5) A record of any contact between the mortgage broker or mortgage loan originator and the borrower relating to the rate, terms, or conditions of the loan; and

(6) A list of all mortgage loan originators, as defined in SDCL 54-14-1(7), along with documentation for each loan originator indicating each state in which the originator works and makes loans.

Any records required by this section may be maintained in the form of electronically encoded data available for examination on the basis of computer printed reproduction, video display, or other medium that is readily convertible by the division into legible, tangible documents.

Any record required by this section shall be prepared in accordance with generally accepted accounting principles, if applicable.

S.D. Admin. R. 20:07:19:08

33 SDR 226, effective 7/1/2007; 34 SDR 322, effective 6/30/2008; 36 SDR 208, effective 6/30/2010.

General Authority: SDCL 54-14-26, 54-14-31.

Law Implemented: SDCL 54-14-26, 54-14-27.