12 CFR Appendix C to role 1008 – separate Contractors and Loan Processor and Underwriter Activities that need a State real estate loan Originator License

The examples listed here are designed to assist into the comprehension of loan underwriting or processing tasks which is why a person is needed to have a S.A.F.E. Act-compliant home mortgage originator permit. The examples in this appendix aren’t all-inclusive. They illustrate just the issue described plus don’t illustrate some other conditions that may arise under component 1008. For purposes of this examples below, the term “loan” relates to a domestic real estate loan as defined in В§ 1008.23 of the component.

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

(1) Any person that engages in the company of that loan originator, as defined in В§ 1008.103 with this component;

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

(3) Any person that gathers, gets, distributes, or analyzes information associated with the creating of a credit decision and that is 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 essential for creating a credit decision and that is a contractor that is independent as that term is defined in В§ 1008.23.

(b) circumstances isn’t needed to impose S.A.F.E. Act certification needs on any loan that is individual or underwriter whom, as an example:

(1) works only clerical or help duties (i.e., the mortgage processor’s or underwriter’s activities try not to add, e.g., offering or negotiating loan prices or terms, or guidance borrowers or prospective borrowers about loan rates or terms), and whom does those clerical or help duties during the direction of and susceptible to the guidance and instruction of somebody who either: Is licensed and registered in conformity with В§ 1008.103(a) (state certification of loan originators); or perhaps is not necessary to be certified she is excluded from the licensing requirement pursuant to В§ 1008.103(e)(2 because he or) (time-share exclusion), ( ag e)(5)(federally registered loan originator), ( ag e)(6) ( federal federal government workers exclusion), or (e)(7) (nonprofit exclusion).

(2) works just clerical or help duties as a member of staff of a mortgage loan provider or home loan brokerage company, and whom does those duties during the direction of and susceptible to the direction and instruction of a person who is utilized because of the employer that is same who’s licensed in accordance with В§ 1008.103(a) (state licensing of loan originators).

(3) Is a worker of a loan processing or underwriting business providing you with loan processing or underwriting services to at least one or even more home loan brokers or home loan brokerage organizations under an agreement involving the loan processing or underwriting company and also the lenders or home loan brokerage businesses, offered 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 employee of the identical loan processing and underwriting business.

(4) Is somebody who does not otherwise perform the actions of that loan originator and it is maybe not mixed up in receipt, collection, distribution, or analysis of data typical for the processing or underwriting of the domestic home mortgage, nor is in communication because of the customer to get information that is such.

(c) to be able to conclude that a person who executes clerical or support duties is performing therefore in the direction of and susceptible to the direction and instruction of that loan originator that is certified or registered in accordance with В§ 1008.103 (or, payday loans VT as applicable, a person who is excluded through the certification and enrollment requirements under В§ 1008.103(e)(2), ( ag e)(6), or ( ag e)(7)), there needs to be a nexus that is actual the licensed or registered loan originator’s (or excluded person’s) direction, guidance, and instruction and also the loan processor or underwriter’s tasks. This real nexus must certanly be significantly more than a nominal relationship on a chart that is organizational. 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 workouts conventional supervisory duties, including, although not limited by, working out, mentoring, and assessment associated with loan processor or underwriter worker.