Mortgage Loan Origination FAQ

Effective January 13, 2005, the Mortgage Brokers Act (as codified in SC Code title 40 chapter 58) requires that Originators become licensed with the South Carolina Department of Consumer Affairs.

Below are some Frequently Asked Questions about this procedure.

Q.	Who is an originator?
A.	An Originator is someone who accepts or offers to accept applications for mortgage loans as an employee of a licensed Mortgage Broker. Please note that the law requires brokers and originators to notify the department of any changes in employment and restricts originators to being employed by only one broker. If you have questions concerning your status as an originator, please contact the South Carolina Department of Consumer Affairs.

Q.	What is the procedure for licensing?
A.	To apply complete the application and send to the department for processing, include the licensing fee of $50 and the fee for a criminal records check of $25 for a total of $75 make checks payable to SCDCA. The application and instructions are available on our website.

Q.	When must I be licensed? How long is this license valid?
A.	To originate a mortgage after January 13, 2005 you must be licensed, however the licensing period for currently employed originators to be licensed runs from January 13, 2005 until March 31, 2005. After March 31, 2005 originators must be licensed to originate mortgages.

Q.	Where can I get forms for licensing?
A.	Forms are available at the SCDCA website at the SC Department of Consumer Affairs offices, located at 3600 Forest Drive, Suite 300, Columbia SC, 29204.

Q.	What are the licensing fees for Loan Originators?
A.	Loan Originators must be individually licensed at a cost of $50 each.

Q.	What about Branch Offices?
A.	After January 13, 2005, any new branch offices must pay a nonrefundable licensing fee of $150 per branch location.

Q.	Are there other fees to be paid?
A.	Owners of mortgage broker companies and originators are also required pay the cost of a SLED criminal records check. Originator criminal records checks will be completed when the originator is licensed. Owner criminal records checks will be completed at renewal for currently licensed companies and at application for all new companies.

Q.	Are there continuing Education requirements?
A.	Originators are required to receive 8 hours per year of continuing education.

SOUTH CAROLINA DEPARTMENT OF CONSUMER AFFAIRS

SOUTH CAROLINA DEPARTMENT OF
CONSUMER AFFAIRS