South Carolina Code of Regulations Chapter 15 - STATE BOARD OF FINANCIAL INSTITUTIONS CONSUMER FINANCE DIVISION
Here’s a detailed overview of Chapter 15 – State Board of Financial Institutions, Consumer Finance Division from the South Carolina Code of Regulations:
📘 Chapter Structure
Article 1 – Banking, Commercial Paper & Finance (Sections 15‑1 to 15‑39S)
Covers rules for state-chartered financial institutions—banks, savings & loan associations, and credit unions—on lending, investments, record retention, mortgage terms, etc. Includes provisions on alternative mortgage loans (§ 15‑39Q) under Truth in Lending Act guidelines (law.justia.com).
Article 2 – Cooperative Credit Unions (§ 15‑40 to 15‑53)
Focuses on regulations specific to state-chartered credit unions, including membership, lending limits, dividends, and field-of-membership rules .
Article 3 – Consumer Finance Act Regulations (§ 15‑60 to 15‑63)
Implements the Consumer Finance Act by setting guidelines on licensing consumer finance companies, allowable finance charges, and dollar thresholds .
Article 4 – Mortgage Lending Act Regulations (§ 15‑64)
Adopts rules for licensing, disclosures, rate schedule, NMLS identifiers, recordkeeping, and reporting under South Carolina Mortgage Lending Act and federal S.A.F.E./RESPA standards (scstatehouse.gov).
Article 5 – Act 433 (1988) Regulations (§ 15‑65 to 15‑68)
Imposes requirements for check cashing businesses, including licensing through NMLS (§ 15‑66), record‐retention (§ 15‑67), and mandatory purchase disclosures (§ 15‑68). These provisions were updated May 26, 2023 (scstatehouse.gov).
⚖️ Key Highlights & Obligations
🏦 Mortgage Lending (Article 4, § 15‑64)
Must display NMLS ID on applications, notes, contracts, advertisements.
Mortgage logs and annual Mortgage Call Reports filed electronically via NMLS.
Section 37‑22‑140(M) applications must be completed within 120 days (scstatehouse.gov).
🏘️ Alternative Mortgage Consumer Loans (§ 15‑39Q)
Financial institutions may offer loans up to $100,000 secured by real estate.
Variable rates must follow federally regulated indices and comply with TILA’s Reg Z and similar federal requirements (law.justia.com).
💵 Consumer Finance Companies (Article 3, § 15‑60 to 15‑63)
Licensing and finance charge regulations as specified under S.C. Code Sections 34‑1‑110 and 34‑29‑110 (law.cornell.edu).
💰 Check-Cashing Businesses (§ 15‑65 – 68)
Levels I & II license through NMLS; annual renewals due by December 31.
Use NMLS for applications, renewals, and fee payments (§ 15‑66).
Must retain transaction records for one year after fiscal year (§ 15‑67).
Mandatory purchase disclosures if check cashing is tied to purchasing goods/services (§ 15‑68) (scstatehouse.gov).
📄 Advertising & Disclosures
Any published rate schedule must show net funds and must not mislead borrowers about charges.
Promotional materials must clearly state “Licensed by the State of South Carolina” (scstatehouse.gov).
📚 Recordkeeping
Required records must include borrower details, transaction amounts, fees.
Records for consumer finance and check-cashing must be maintained for specified retention periods (§ 15‑67) (scstatehouse.gov).
⏰ Updates & Effective Dates
Latest state register updates: Vol. 49, No. 3 (March 28, 2025) (regulations.justia.com).
Key amendments:
Mortgage lending rules: May 26, 2017.
Check-cashing updates: May 26, 2023.
Most recent chapter update: effective May 24, 2024; includes new rules (Vol 48 No 5) and updates on Nov 22, 2024, Jan 24, 2025 (law.cornell.edu, scstatehouse.gov).
✅ Summary
Chapter 15 organizes comprehensive regulations governing non-depository consumer finance, mortgage lending, cooperative credit unions, and check-cashing services. It ensures licensing standards, transparent disclosures, NMLS integration, and mandatory record-keeping.
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