South Dakota’s Governor signed House Bill 1060 into law on March 16, 2009, giving the Director of Banking the authority to promulgate rules that will bring the state into compliance with the federal Secure and Fair Enforcement for Mortgage Licensing Act. 

Among the topics that must be discussed in the upcoming months are pre-licensing education requirements (currently South Dakota does not require this); a written exam that must be taken by all mortgage loan originator applicants; the process of applying for a license via the Nationwide Mortgage Licensing System and Registry; and a possible fee increase initial licensure as well as renewals.  The legislation becomes effective on July 31, 2010, for initial licensees and on December 31, 2010, for any individual licensed as a mortgage loan originator as of July 1, 2009.