Summary
The South Carolina Supreme Court considered whether lenders engaged in the unauthorized practice of law by preparing, executing, and recording loan modification documents without attorney supervision. The court distinguished loan modifications from real estate purchases and mortgage refinancing, holding that loan modification without attorney participation does not constitute the unauthorized practice of law. The court entered judgment for the respondents and did not reach whether the mortgages should be deemed void.
Holdings
- A lender does not engage in the unauthorized practice of law by preparing and mailing loan modification documents to borrowers and recording the executed documents without participation of a licensed attorney.
- The court did not reach the issue because its rejection of the unauthorized-practice-of-law claim was dispositive.
Questions Presented
- Whether lenders engage in the unauthorized practice of law by preparing and mailing loan modification documents to borrowers and recording the executed documents without the participation of a licensed attorney.
- Whether the petitioners' mortgages should be deemed void if an attorney's participation was legally required for the loan modifications.
Disposition
other
Cases Cited (10)
- In re Unauthorized Practice of Law Rules, 309 S.C. 304, 422 S.E.2d 123 (1992)(followed)
- State v. Despain, 319 S.C. 317, 460 S.E.2d 576 (1995)(followed)
- In re Duncan, 83 S.C. 186, 65 S.E. 210 (1909)(followed)
- State v. Buyers Serv. Co., Inc., 292 S.C. 426, 357 S.E.2d 15 (1987)(distinguished)
- Doe v. McMaster, 355 S.C. 306, 585 S.E.2d 773 (2003)(distinguished)
- Futch v. McAllister Towing of Georgetown, Inc., 335 S.C. 598, 518 S.E.2d 591 (1999)(followed)
- In the Matter of the Care and Treatment of McCracken, 346 S.C. 87, 551 S.E.2d 235 (2001)(followed)
- Solomon v. City Realty Co., 262 S.C. 198, 203 S.E.2d 435 (1974)(followed)
- Doe Law Firm v. Richardson, 371 S.C. 14, 636 S.E.2d 866 (2006)(followed)
- Matrix Fin. Servs. Corp. v. Frazer, 394 S.C. 134, 714 S.E.2d 532 (2011)(distinguished)
Cited In (0)
No citing cases on record yet.
Court Document
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