Appendix C to role 1008 – Independent Contractors and Loan Processor and Underwriter Activities That Require a situation home mortgage Originator License


Appendix C to role 1008 – Independent Contractors and Loan Processor and Underwriter Activities That Require a situation home mortgage Originator License

The examples listed here are created to assist within the knowledge of loan underwriting or processing tasks which is why a person is needed to get yourself a S.A.F.E. Act-compliant real estate loan originator permit. The examples in this appendix aren’t all-inclusive. They illustrate just the issue described and don’t illustrate other problems that may arise under component 1008. For purposes associated with examples below, the word “loan” relates to a mortgage that is residential as defined in В§ 1008.23 with this component.

(a) a person who is that loan processor or underwriter whom must get and continue maintaining a state loan originator permit includes:

(1) Any person that partcipates in the business enterprise of financing originator, as defined in В§ 1008.103 with this component;

(2) Any individual that does clerical or help duties and that is a separate specialist, as those terms are defined in В§ 1008.23;

(3) Any individual that gathers, gets, distributes, or analyzes information relating to the generating of the credit choice and who’s a contractor that is independent as that term is defined in В§ 1008.23; and

(4) Any person that communicates having a customer to acquire information essential for creating a credit choice and that is a contractor that is independent as that term is defined in В§ 1008.23.

(b) a situation isn’t needed to impose S.A.F.E. Act certification needs on any individual loan processor or underwriter whom, for instance:

(1) works just clerical or help duties (for example., the mortgage processor’s or underwriter’s tasks try not to consist of, e.g., providing or negotiating loan prices or terms, or guidance borrowers or potential borrowers about loan prices or terms), and whom works those clerical or help duties at the direction of and susceptible to the direction and instruction of someone who either: Is certified and registered in conformity with В§ 1008.103(a) (state certification of loan originators); or perhaps is not necessary to be certified because they’re excluded through the certification requirement pursuant to В§ 1008.103(e)(2) (time-share exclusion), ( ag e)(5)(federally registered loan originator), ( ag e)(6) ( government workers exclusion), or (e)(7) (nonprofit exclusion).

(2) works just clerical or support duties as a member of staff of a home loan loan provider or home loan brokerage firm, and whom works those duties during the direction of and susceptible to the direction and instruction of somebody who is utilized by the employer that is same that is certified in conformity with В§ 1008.103(a) (state certification of loan originators).

(3) Is a worker of that loan processing or underwriting business providing you with loan processing or underwriting services to at least one or maybe more mortgage brokers or mortgage brokerage businesses under a agreement involving the loan processing or underwriting company plus the lenders or home loan brokerage businesses, provided the employee carries out just clerical or support duties and executes those duties just during the direction of and susceptible to the direction and instruction of a loan that is licensed worker of the identical loan processing and underwriting business.

(4) Is somebody who will not otherwise perform the actions of that loan originator and it is perhaps perhaps maybe not active in the receipt, collection, circulation, or analysis of data typical for the processing or underwriting of the domestic home mortgage, nor is with in communication with all the consumer to get such information.

(c) to be able to conclude that someone who carries out clerical or help duties has been doing therefore in the direction of and susceptible to the direction and instruction of financing originator that is certified or registered in conformity with В§ 1008.103 (or, as relevant, somebody who is excluded through the certification and enrollment needs under В§ 1008.103(e)(2), ( ag ag e)(6), or ( ag ag ag e)(7)), there should be a nexus that is actual the licensed or registered loan originator’s (or excluded person’s) direction, guidance, and instruction additionally the loan processor or underwriter’s tasks. This actual nexus must certanly be significantly more than a nominal relationship for an organizational chart. For instance, there is certainly a genuine nexus whenever:

(1) The supervisory licensed or loan that is registered assigns, authorizes, and monitors the mortgage processor or underwriter worker’s performance of clerical and help duties.

(2) The supervisory licensed or authorized loan originator workouts conventional supervisory duties, including, although not limited by, working out, mentoring, and assessment associated online payday ND with the loan processor or underwriter worker.