# S.C. Code Ann. § 40-58-70: SECTION 40-58-70. Prohibited activities > South Carolina · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-70 ## Section - **Citation:** S.C. Code Ann. § 40-58-70 - **Heading:** SECTION 40-58-70. Prohibited activities - **Jurisdiction:** South Carolina - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** SC Code / Title 40 / Chapter 58 / Section 40-58-70 ## Text In addition to the activities prohibited by other provisions of state or federal law, it is unlawful for a person in the course of a mortgage loan transaction to: (1) misrepresent the material facts or make false promises likely to influence, persuade, or induce an applicant for a mortgage loan or a mortgagor to take a mortgage loan. This includes presenting the broker in the guise of a lender or pursuing a course of misrepresentation through agents or otherwise; (2) intentionally misrepresent or conceal a material factor, term, or condition of a transaction to which he is a party, pertinent to an applicant for a mortgage loan or a mortgagor; (3) engage in a transaction, practice, or course of business which is unconscionable, as provided in Section 37-5-108, or which operates a fraud upon a person in connection with the making of or purchase or sale of a mortgage loan; (4) fail to use due diligence and make reasonable efforts in procuring a mortgage loan on behalf of a borrower; (5) collect any allowable third party fees excluding appraisals or credit reports before a conditional mortgage loan commitment is obtained by the mortgage broker; (6) influence or attempt to influence through coercion, extortion, or bribery the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan. This item does not prohibit a mortgage broker or mortgage lender from asking the appraiser to do one or more of the following: (a) consider additional appropriate property information; (b) provide further detail, substantiation, or explanation for the appraiser's value conclusion; or (c) correct errors in the appraisal report; (7) fail to pay reasonable fees within a reasonable time to a licensed third party for services that are: (a) requested from the third party in writing by the mortgage broker or an employee of the mortgage broker; and (b) performed by the third party in connection with the origination or closing of a mortgage loan for a customer or mortgage lender; (8) advertise mortgage loans, including rates, margins, discounts, points, fees, commissions, or other material information, including material limitations on the loans, unless the person is able to make the mortgage loans as advertised available to qualified applicants; (9) fail to provide disclosures as required by state or federal law or collect any fee prior to providing required disclosures; (10) fail to comply with this chapter or any other state or federal law including rules and regulations applicable to a business regulated by this chapter; (11) falsely advertise or misuse names in violation of 18 U.S.C. Section 709 or state law; or (12) use any trade name or insignia of membership in any organization of which the licensee is not a member or advertise falsely through any material including, but not limited to, any business card, stationery, or signage concerning a designation or certification of special education, credentials, trade organization membership, or business. Editor's Note Prior Laws:1988 Act No. 544; 1993 Act No. 172, SECTION 1; 2005 Act No. 7, SECTION 1. ## Nearby sections - [S.C. Code Ann. § 40-58-10 SECTION 40-58-10. Citation of chapter; mortgage loan broker requirements.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-10.md) - [S.C. Code Ann. § 40-58-20 SECTION 40-58-20. Definitions.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-20.md) - [S.C. Code Ann. § 40-58-30 SECTION 40-58-30. Mortgage brokers and loan originators to be licensed; exceptions.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-30.md) - [S.C. Code Ann. § 40-58-40 SECTION 40-58-40. Surety bonds; determination of amount; uses.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-40.md) - [S.C. Code Ann. § 40-58-50 SECTION 40-58-50. Application for licensure; applicant work experience and education requirements; exceptions; license required for qualified loan originator.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-50.md) - [S.C. Code Ann. § 40-58-60 SECTION 40-58-60. Issuance of license; contents and posting; issuance as indication of approval of contracts by State or state agency; correction of errors; advertising.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-60.md) - [S.C. Code Ann. § 40-58-65 SECTION 40-58-65. Maintenance, availability, and examination of records; mortgage loan logs; official place of business; notice to close branch office or to cease business in State.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-65.md) - [S.C. Code Ann. § 40-58-67 SECTION 40-58-67. Continuing professional education requirements.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-67.md) - [S.C. Code Ann. § 40-58-70 SECTION 40-58-70. Prohibited activities.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-70.md) - [S.C. Code Ann. § 40-58-75 SECTION 40-58-75. Mortgage broker fee agreements disclosing charges.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-75.md) - [S.C. Code Ann. § 40-58-78 SECTION 40-58-78. Mortgage broker fee agreement requirements; penalty for violations; unintentional violations.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-78.md) - [S.C. Code Ann. § 40-58-80 SECTION 40-58-80. Denial, suspension, revocation, or nonrenewal of license; grounds; administrative penalty; cease and desist orders; investigation or examination of loans; notification of national registry.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-80.md) - [S.C. Code Ann. § 40-58-90 SECTION 40-58-90. Request for contested case hearing before Administrative Law Court.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-90.md) - [S.C. Code Ann. § 40-58-100 SECTION 40-58-100. Authority to promulgate regulations.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-100.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_SC_T40_C58_S40-58-70. Check the current official text before relying on it. Not legal advice.