Current Status Bill Number:
3265Type of Legislation: General Bill GBIntroducing Body: HouseIntroduced Date: 19970121Primary Sponsor: ScottAll Sponsors: ScottDrafted Document Number: bbm\10978jm.97Residing Body: HouseCurrent Committee: Labor, Commerce and Industry Committee 26 HLCISubject: Mortgage loans, borrower may select company of choice; Banks and Savings and Loan Associations
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ House 19970121 Introduced, read first time, 26 HLCI referred to CommitteeView additional legislative information at the LPITS web site.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 37-10-108 SO AS TO PROVIDE THAT, WITH RESPECT TO MORTGAGE LOANS, A BORROWER MAY SELECT THE MORTGAGE COMPANY OF HIS CHOICE WITHOUT RESTRICTION, AND IMPOSE A CIVIL PENALTY ON A SELLER OF REAL PROPERTY WHO PRESSURES OR ATTEMPTS TO PRESSURE THE PURCHASER-BORROWER TO SEEK THE MORTGAGE LOAN FOR THE PROPERTY FROM THE MORTGAGE COMPANY PREFERRED BY THE SELLER.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 37-10-108. Notwithstanding any other provision of law:
(1) the borrower, with respect to a mortgage loan, may select the mortgage company of his choice without any restriction; and
(2) any seller of real property who pressures or attempts to pressure, either directly or indirectly, any purchaser-borrower to seek the mortgage loan for the property being purchased from a mortgage company preferred by the seller including, but not limited to, the use of the tactic of indicating to the purchaser-borrower that the seller will not pay any or all of the purchaser-borrower's closing costs associated with the mortgage loan unless that mortgage company is used, is subject to a civil penalty of not less than five thousand dollars but not exceeding ten thousand dollars for such act of pressure or attempt to pressure."
SECTION 2. This act takes effect upon approval by the Governor.