The bill S. 780, introduced by Senator Gambrell, seeks to amend Section 37-23-20 of the South Carolina Code of Laws, which pertains to definitions related to high-cost and consumer home loans. The primary change involves redefining the term "conventional mortgage rate" to mean the average prime offer rate as defined in federal regulations, specifically referencing the rate published by the United States Consumer Financial Protection Bureau. This amendment aims to clarify the criteria for determining the conventional mortgage rate, ensuring it reflects current market conditions at the time the interest rate is set by the lender.

Additionally, the bill modifies the definition of "threshold" in loan transactions, detailing the conditions under which a loan is considered a "mortgage" and specifying the criteria for points and fees that may be charged to borrowers. The amendments include provisions for calculating total points and fees, with specific exclusions for certain discount points and prepayment penalties. The bill is set to take effect upon approval by the Governor, indicating a legislative effort to enhance consumer protection in the home loan market.

Statutes affected:
01/13/2026: 37-23-20
Latest Version: 37-23-20