Document No. 1628
DEPARTMENT OF CONSUMER AFFAIRS
Chapter 28
Statutory Authority: 1978 Code Section 40-58-10

28-400 - - Mortgage Loan Broker Certificate of Registration

A. Definitions

Definitions shall be those contained in the Registration Requirements Act of certain loan brokers of mortgages and deeds of trust on residential real property, S.C. Code Ann. Section 40-58-10 et seq. and the following:

Co-brokering - any sharing, regardless of percentage, of mortgage loan broker services or fees by two or more mortgage loan brokers on behalf of an applicant.

B. Certificates of Registration

(1) All organizations wishing to provide mortgage loan broker services in this state must first obtain a Certificate of Registration from the administrator of the Department of Consumer Affairs. Applications for the Certificate will be made on the form prescribed by the administrator.

(2) Certificates of Registration expire each September 30 but may be renewed upon payment of a renewal fee of $500.00 on or before September 30. The renewal period will be between August 1 and September 30 of each year. Renewal applications for the Certificate will be made on the form prescribed by the administrator.

(3) Issuance of a Certificate of Registration does not indicate approval or acceptance of the terms of any contract, agreement or other document submitted in support of the application. No organization providing mortgage loan broker services will in any way represent that its services or contracts are approved by the State or any state agency.

C. Record keeping

(1) All organizations wishing to provide mortgage loan broker services in this State must maintain and keep for a period of three years in the mortgage loan broker's principal office all required records or the equivalent. These records must be available for inspection at reasonable times by the administrator or his designee.

(2) Mortgage loan broker agreements must be in writing and include the current name, address, and telephone number of the mortgage loan broker's principal office, the account number (if any); the date of the agreement; the name of the borrower or any proposed borrower; signature of the borrower and mortgage loan broker; the amount of any fees and the nature of services provided to the borrower. A copy of the completed agreement must be provided to the borrower by the mortgage loan broker. The mortgage loan broker agreement may provide for a signed acknowledgment by the borrower of receipt of a copy of the agreement. If any registrant co-brokers mortgage loans, the mortgage loan broker agreement must contain a statement advising the applicant the loan may be co-brokered. Within three days of making the final decision to co-broker a loan, the broker must provide the applicant with written notice of such co-brokering, including the name and street and mailing address of the co-broker as well as which broker is to be contacted regarding progress of the mortgage loan brokers' services provided to the applicant.

(3) Mortgage loan broker files must include the name and address of the borrower or any proposed borrower; a copy of the signed mortgage loan broker agreement; if a loan was obtained for the borrower, the name and address of the creditor; if a loan is accepted by the borrower, a copy of the loan agreement, the amount of the mortgage loan broker's fee that the borrower has paid to the mortgage loan broker and listing of the amount, dated returned, name, and address used for any refund of fees.

(4) Records of mortgage loan broker escrow accounts maintained and kept by the mortgage loan broker must indicate the amounts, identity and disposition of all escrowed funds deposited or withdrawn from an identified interest bearing account of a supervised financial organization in this State.

D. Advertising

All advertisements of residential mortgage loans by a registrant must comply with the requirements of the Truth-in-Lending Act, 15 U.S.C. 1801 et seq. and Regulation Z. 12 C.F.R Section 226 as amended as well as the South Carolina Consumer Protection Code.