Appendix C to Part 1008 – separate Contractors and Loan Processor and Underwriter Activities that need a situation real estate loan Originator License
The examples here are created to assist within 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 loan originator license. The examples in this appendix aren’t all-inclusive. They illustrate just the presssing issue described and don’t illustrate just about any problems that may arise under component 1008. For purposes regarding the examples below, the word вЂњloanвЂќ relates to a mortgage that is residential as defined in В§ 1008.23 of the component.
(a) a person who is that loan processor or underwriter whom must get and keep maintaining a situation loan originator permit includes:
(1) Any individual that partcipates in the company of that loan originator, as defined in В§ 1008.103 of the component;
(2) Any individual that does clerical or help duties and who’s 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 that is a separate specialist, as that term is defined in В§ 1008.23; and
(4) Any individual that communicates having a customer to get information required for building a credit choice and who’s a separate contractor, 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 loan that is individual or underwriter whom, as an example:
(1) Performs just clerical or help duties (i.e., the mortgage processor’s or underwriter’s tasks try not to consist of, e.g., providing or negotiating loan prices or terms, or counseling borrowers or potential borrowers about loan prices or terms), and whom executes those clerical or help duties during the direction of and susceptible to the guidance and instruction of someone who either: Is certified and registered in accordance with В§ 1008.103(a) (state certification of loan originators); or perhaps is not necessary to be certified because she or he is excluded through the certification requirement pursuant to В§ 1008.103(e)(2) (time-share exclusion), ( ag e)(5)(federally registered loan originator), ( e)(6) ( federal federal government employees 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 company, and whom does those duties during the direction of and susceptible to the direction and instruction of a person who is required 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 a loan processing or underwriting business that delivers loan processing or underwriting services to 1 or maybe more lenders or mortgage brokerage companies under a agreement amongst the loan processing or underwriting business together with home loan brokers or mortgage brokerage companies, offered the employee executes just clerical or help duties and executes those duties just in 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 doesn’t otherwise perform those activities of that loan originator and it is maybe perhaps maybe not active in the receipt, collection, circulation, or analysis of data typical for the processing or underwriting of the domestic real estate loan, nor is in interaction with all the customer to get such information.
(c) to be able to conclude that someone who does clerical or support duties has been doing therefore during the direction of and susceptible to the direction and instruction of that loan originator that is certified or registered in conformity with В§ 1008.103 (or, as applicable, somebody who is excluded through the certification and enrollment needs under В§ 1008.103(e)(2), ( e)(6), or ( ag e)(7)), there should be a nexus that is actual the licensed or registered loan originator’s (or excluded person’s) way, guidance, and instruction therefore the loan processor or underwriter’s tasks. This real nexus must certanly be a lot more than a nominal relationship on an organizational chart. For instance, there clearly 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 support duties.
(2) The supervisory licensed or subscribed loan originator workouts conventional supervisory obligations, including, although not limited by, working out, mentoring, and assessment of this loan processor or underwriter worker.