SDCL 54-14 defines a mortgage lender as “any person who, 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, other than those exempt pursuant to SDCL 54-14-21.”

Any person or entity meeting this definition must apply for licensure as a mortgage lender using the National Mortgage Licensing System (NMLS).  For more information about the NMLS, take a look at the interactive overview: Overview of NMLS.

Pursuit to SDCL 54-14-13.5, any insurance company lending money for ONLY nonresidential mortgage loans must hold a mortgage lending license but is exempt from using the NMLS and other provision of SDCL 54-14. For the application form and instructions click HERE.

GETTING STARTED:

STEP 1 – Request a NMLS Account
To gain access to the NMLS for the first time, a company must submit a form requesting an account. The Company Account Request Form can be accessed at the link below and takes only a few minutes to complete. Once the form has been submitted it will be reviewed for accuracy.  If validated, an account will be set up for the company and User IDs and passwords will be issued to the account administrator(s) identified. https://www.statemortgageregistry.com/Public/CompanyAccountRequest.aspx

STEP 2 – Getting Prepared
The following resources will help you prepare to use the NMLS:

• Workflow and Quick Guides
  Recommended workflow guides for various licensing scenarios along with Quick Guides that cover “how to” for key tasks.
• Navigation Guides
  Detailed “How To” instructions with screenshots that you can download and print.
• MU Forms
  Download sample forms to help you gather the necessary information.
• Tutorials
  Take interactive tutorials covering major topics and tasks.

STEP 3 – South Dakota Specific requirements
Review the jurisdiction-specific requirements for South Dakota. You can print out a checklist of jurisdiction-specific requirements by going to the State Licensing Resource Page.

STEP 4 – Login & Complete Your Record
Once your company's account administrator(s) receives his or her User ID and password, click on the "Log into NMLS" button above. From there, follow the instructions outlined in the Tutorials and Navigation Guides to complete your record and submit it to South Dakota Division of Banking.

STEP 5 – Submit & Pay
When you are ready to submit your filing, you will need to run the Completeness Check. Once the Completeness Check is finished, you can submit the filing and pay the licensing fees. Acceptable payment methods are Visa, MasterCard and bank ACH payment (Automated Clearing House). See the ACH Guide for information you may need to provide to your bank if they require pre-authorization of payments.

Loan Originators:
Mortgage lender licensees are allowed to use the services of a mortgage loan originator (MLO) that operates under the direct control and supervision of the licensee. All MLOs under a licensee’s supervision will need to be separately licensed.  They will need to apply for licensure using the NMLS.  To determine if your employees need to be licensed you will need to determine if they meet the statutory definition of a mortgage loan originator.  Lenders are responsible for verifying that a mortgage loan originator is registered with the State of South Dakota before using their services.

Application Review Process:
When License Request filing is received through NMLS, the SDDOB will review it for completeness.  We will send out SD specific fingerprint cards for all individuals required to complete the background check along with a list of any missing information, if necessary.  We will not accept generic fingerprint cards.  Fingerprinting must be done on the cards provided by our office – NO EXCEPTIONS.  The SDDOB will continue to review the information in the application while waiting for the fingerprint cards and other state specific requirements to be returned.  Once the fingerprint cards are received by SDDOB they are forwarded to SD Division of Criminal Investigation (DCI) for processing.  It can take up to 6-8 weeks to get the results of a criminal background check.  Once the SD DCI has the fingerprint cards, we cannot check on the status of the background check.

When we receive the results of the background checks, we will conclude our review of the application and notify the applicant of our decision.  If the application is approved, a license will be issued immediately.  If the application is denied, the applicant may appeal the decision under SDCL 1-26 within 30 days.  The applicant will be notified of the appeal process at the time the decision is provided. 

Renewal Information:
All mortgage licenses expire on December 31st.  Renewal requests must be filed by December 1st to avoid a late fee.  Renewals will be handled through the NMLS.  Correspondence containing instructions for renewal will be sent via the NMLS starting in October. 

Continuing Education:
The current CE requirement for all mortgage licenses in South Dakota is 9 hours of approved continuing education.  Mortgage Lender licensees are required to name a qualifying individual at the time of application.  This individual will be responsible for completing the CE requirement for the licensee.  A list of approved providers and courses can be found under the “Continuing Education” link in the right margin of this page.  All continuing education must be completed prior to renewal.

Amendments:

If at anytime the information which was submitted with the original NMLS filing changes, an amendment is required.  The applicant must submit amendments using the NMLS.  Instructions for specific amendments, including required documentation to be sent outside of NMLS is available HERE.