On July 1, 2020, the South Dakota Division of Banking began accepting mortgage branch registration applications via NMLS. Previously, the division did not require branches of South Dakota mortgage lender licensees, mortgage brokerage licensees, or non-residential mortgage lender licensees to be registered in this fashion. This was a surprising position change, particularly considering that industry (and even other regulators) have been advocating in recent years for branch licensing requirements to be repealed. For more on this point, please listen to our April 22, 2020 webcast titled Branch licensing in a remote world.
The NMLS description of the registration provides that it is required for any branch of a South Dakota mortgage lender licensee, mortgage brokerage licensee, or non-residential mortgage lender licensee that “for valuable consideration, originates, sells, or services mortgages, or holds himself, herself, or itself out as a person who, for valuable consideration, originates, sells, or services mortgages.”
Licensees have until December 31, 2021 (more than 17 months) to register their applicable branches. No items are required outside of NMLS regarding the application. However, branch managers must be licensed as South Dakota mortgage loan originators, which could take several months to coordinate.
For assistance with this license application (or any other license application), don’t hesitate to contact APPROVED.