Appendix C to role 1008 – separate Contractors and Loan Processor and Underwriter Activities that need a situation home loan Originator License

The examples here are created to assist into the comprehension of loan underwriting or processing tasks which is why a person is needed to get a S.A.F.E. Act-compliant home mortgage originator permit. The examples in this appendix aren’t all-inclusive. They illustrate just the presssing issue described plus don’t illustrate virtually any conditions that may arise under component 1008. For purposes for the examples below, the term “loan” identifies a mortgage that is residential as defined in В§ 1008.23 of the component.

(a) someone who is that loan processor or underwriter whom must get and keep maintaining a situation loan originator license includes:

(1) Any person that partcipates in the business enterprise of that loan originator, as defined in В§ 1008.103 of the part;

(2) Any person that executes clerical or help duties and that is a contractor that is independent as those terms are defined in В§ 1008.23;

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

(4) Any individual that communicates by having a customer to acquire information needed for making a credit choice and that is a separate contractor, as that term is defined in В§ 1008.23.

(b) circumstances isn’t needed to impose S.A.F.E. Act certification demands on any loan that is individual 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 add, e.g., offering or negotiating loan prices or terms, or guidance borrowers or potential borrowers about loan prices or terms), and whom carries out those clerical or help duties in the direction of and susceptible to the guidance and instruction of a person who either: Is certified and registered in conformity with В§ 1008.103(a) (state licensing of loan originators); or perhaps is not essential to be certified she is excluded from the licensing requirement pursuant to В§ 1008.103(e)(2 because he or) (time-share exclusion), ( ag ag e)(5)(federally registered loan originator), ( ag e)(6) ( federal government workers exclusion), or (e)(7) (nonprofit exclusion).

(2) works just clerical or support duties as a worker of a home loan loan provider or home loan brokerage firm, and whom executes those duties during the direction of and susceptible to the guidance and instruction of someone who is utilized by the same boss and that is certified in accordance payday loans Michigan with В§ 1008.103(a) (state certification of loan originators).

(3) Is a worker of that loan processing or underwriting business that delivers loan processing or underwriting services to 1 or higher home loan brokers or home loan brokerage companies under a agreement between your loan processing or underwriting business while the mortgage brokers or mortgage brokerage organizations, offered the employee does just clerical or help duties and executes those duties just during the direction of and susceptible to the direction and instruction of the licensed loan originator worker of the same loan processing and underwriting business.

(4) Is a person who doesn’t otherwise perform those activities of that loan originator and it is perhaps not active in the receipt, collection, circulation, or analysis of data typical for the processing or underwriting of a domestic real estate loan, nor is with in interaction utilizing the customer to have such information.

(c) to be able to conclude that somebody who works clerical or help duties does therefore in the direction of and subject to the direction and instruction of that loan originator that is certified or registered in conformity with В§ 1008.103 (or, as relevant, a person who is excluded through the certification and enrollment needs under В§ 1008.103(e)(2), ( ag e)(6), or ( ag e)(7)), there needs to be a real nexus between the licensed or registered loan originator’s (or excluded individual’s) way, guidance, and instruction and also the loan processor or underwriter’s tasks. This real nexus should be significantly more than a nominal relationship on an organizational chart. As an example, there was 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 subscribed loan originator exercises conventional supervisory duties, including, although not restricted to, working out, mentoring, and assessment for the loan processor or underwriter worker.