Qualified Loan Originator

2025-2026 Bill 871: Qualified Loan Originator - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
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S. 871
STATUS INFORMATION
General Bill
Sponsors: Senator Elliott
Document Path: SR-0074CEM26.docx
Introduced in the Senate on January 29, 2026
Currently residing in the Senate Committee on
Labor, Commerce and Industry
Summary: Qualified Loan Originator
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

1/29/2026

Senate

Introduced and read first time (
Senate Journal-page 6
)

1/29/2026

Senate

Referred to Committee on
Labor, Commerce and Industry
(
Senate Journal-page 6
)

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
01/29/2026

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.

B
e it enacted by the
General Assembly of the State of South Carolina:

S
ECTION 1.
S
ection
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.

S
ECTION 2. This act takes effect upon approval
by the Governor.

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This web page was last updated on January 29, 2026 at 11:48 AM