The bill S. 871 aims to amend Section 40-58-50 of the South Carolina Code of Laws, which regulates qualified loan originators. The amendment introduces an exception for experienced qualified loan originators, allowing them to engage in certain activities that would otherwise be prohibited. Specifically, it stipulates that a qualified loan originator must have experience equivalent to that required for a mortgage broker's license to be exempt from restrictions on compensation based on loan terms, the types of loans they can offer, and the handling of borrower funds.

The bill outlines that it is unlawful for a qualified loan originator, without the requisite experience, to be compensated based on the interest rate or fees of the loan, to offer loans other than fixed-term, fixed-rate mortgages, or to manage borrower funds during the loan origination process. This legislation is designed to provide more flexibility for experienced loan originators while maintaining consumer protections in the mortgage lending process. The act will take effect upon approval by the Governor.

Statutes affected:
01/29/2026: 40-58-50
Latest Version: 40-58-50