Does the state require a physical location within the state?
Yes, A mortgage broker must maintain a physical place of business in the state that is open during regular business hours.

Is there individual loan officer licensing?
Yes, loan originators must be licensed by the Department of Consumer Affairs under the South Carolina Mortgage Broker Licensing Act.

What are lenders, brokers and loan officers called?
The terms mortgage brokers and loan originators are used in South Carolina. Lenders who are required to be licensed are referred to as Supervised Lenders.

Is there state reciprocity across state lines?
As of this writing, there is no state reciprocity.

What is the cost of a license? Surety bond? Are there net worth requirements?
An application for a mortgage broker license must be accompanied by a $750 fee ($550 for the license and a $200 non-refundable application processing fee), plus $150 for the license fee for each of the broker's satellite offices. A loan originator's license application must include a fee of $50 and a consent to criminal records check. The broker applicant must be at least 18 years old and have either 6 months of experience as an originator, or have completed 8 hours of continuing education within 90 days of his employment. Licensed mortgage brokers must maintain a $10,000 surety bond. The mortgage broker application must include an affirmation of financial solvency.

Is there a pre-licensing education requirement? Is there a test?
A mortgage broker must have either two years of experience as an originator or with a federally insured institution or an FHA or VA lender. In lieu of one year of the required experience, the broker can show completion of 6 or more college semester hours in real estate law, real estate finance, or similar subjects.

Is there a CE requirement?
Licensed mortgage brokers and loan originators must complete at least eight hours of continuing professional education annually. This continuing education requirement must be satisfied by the owner or partners of a partnership or sole proprietorship and by the 25% or greater members, president, chief executive officer, or other officer who actively participates in the broker entity if the licensee is a limited liability company or corporation. Mortgage loan brokers must report completion of the continuing education to the Department of Consumer Affairs. Brokers must keep documentation of their attendance at the courses for at least two years.

Are there different requirements for mortgage brokers and mortgage lenders
(i.e. can you broker under a lender license)?
The only lender licensing in South Carolina would be under the Supervised Lender License. A lender should determine if this license is required depending on the type loans made.

Are there any state specific high cost loan provisions?
South Carolina enacted the High-Cost and Consumer Home Loans Act which became effective January 1, 2004. This act defines a “high cost home loan” and provides for numerous limitations and prohibitions on those loans. The terms of the loan must exceed at least one of the following thresholds:

• APR test - The Home Ownership and Equity Protection Act (HOEPA) threshold is adopted. Currently, for first-lien loans, the APR is 8 percent above yield on Treasury securities with comparable periods of maturity. For junior-lien loans, the APR is 10 percent above the yield on Treasury securities with comparable periods of maturity.
  
• Points and fees test - Points and fees total 5 percent of the total loan amount if the total loan amount is $20,000 or more, or the lesser of 8 percent of the total loan amount or $1,000 if the total loan amount is less than $20,000, or 3 percent of the total loan amount for non-real estate secured manufactured housing transactions if the total loan amount is $20,000 or more.