South Dakota Enacts Provisions Regarding Mortgage Lender Remote Employees

The Governor recently signed into law certain provisions for remote employees of South Dakota mortgage lender, mortgage brokerage, and money lending licensees, effective July 1, 2022.  Under the new provisions, a licensee’s employee may work in remote locations other than the licensee’s identified business locations if meeting certain required parameters.  For example, the licensee must, among other things: (i) ensure that in-person interactions with consumers are not conducted at the remote location, that the remote location is not represented to consumers as a business location, and that consumer information and records are not maintained at the remote location; (ii) maintain secure virtual private networks and other appropriate safeguards for licensee and consumer data, information, and records; (iii) employ appropriate risk-based monitoring and oversight processes for all work performed at the remote location; and (iv) provide appropriate training to ensure that all conversations about and with consumers conducted from the remote location are kept confidential, as if conducted from the in-person business location.