A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 40-58-50, RELATING TO REGULATION OF A QUALIFIED LOAN ORIGINATOR, SO AS TO PROVIDE AN EXCEPTION FOR EXPERIENCED QUALIFIED LOAN ORIGINATORS.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Section 40-58-50(E)(5) of the S.C. Code is amended to read:

 

    (E)(5) In addition to the activities prohibited by other provisions of state or federal law, it is unlawful for a qualified loan originator, unless that qualified loan originator has equal to or more experience required for an applicant for a mortgage broker's license in Section 40-58-50(B)(2), to:

           (a) be compensated on a basis that is dependent upon the interest rate, fees, or other terms of the loan originated, provided that this section does not prohibit compensation based on the principal balance of the loan;

           (b) offer loans other than fixed-term, fixed-rate, fully amortizing mortgage loans originated for a single mortgage lender with substantially equal monthly mortgage payments and without a prepayment penalty;

           (c) handle borrower or other third-party funds in connection with the origination of mortgage loans.

 

SECTION 2.  This act takes effect upon approval by the Governor.

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