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

The examples listed here are created to help 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 and don’t illustrate every other conditions that may arise under component 1008. For purposes for the examples below, the word “loan” relates to a domestic home loan as defined in В§ 1008.23 with this component.

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

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

(2) Any person that executes clerical or help duties and who’s a independent specialist, as those terms are defined in В§ 1008.23;

(3) Any person that gathers, gets, distributes, or analyzes information associated with 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 with 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 specific loan processor or underwriter who, for instance:

(1) works just clerical or help duties (i.e., the mortgage processor’s or underwriter’s tasks don’t consist of, e.g., providing or loan that is negotiating or terms, or guidance borrowers or potential borrowers about loan prices or terms), and whom carries out those clerical or help duties at the direction of and susceptible to the direction and instruction of a person who either: Is certified and registered in conformity with В§ 1008.103(a) (state certification of loan originators); or perhaps is not essential 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), ( ag ag e)(6) ( online payday loans California federal federal government workers exclusion), or (e)(7) (nonprofit exclusion).

(2) works only clerical or help 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 guidance and instruction of a person who is utilized by the exact same manager and 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 higher mortgage brokers or home loan brokerage organizations under an agreement involving the loan processing or underwriting business and also the home loan brokers or home loan brokerage businesses, supplied the employee executes just clerical or help duties and executes those duties only 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 someone who will not otherwise perform the actions of that loan originator and it is perhaps maybe perhaps not mixed up in receipt, collection, circulation, or analysis of data typical for the processing or underwriting of the domestic home mortgage, nor is in interaction because of the customer to get information that is such.

(c) so that you can conclude that a person who does clerical or help duties has been doing 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, as relevant, someone who is excluded through the licensing and enrollment needs under В§ 1008.103(e)(2), ( ag e)(6), or ( ag ag e)(7)), there has to be a real nexus between the licensed or registered loan originator’s (or excluded person’s) way, direction, and instruction and also the loan processor or underwriter’s tasks. This real nexus must certanly be a lot more than a nominal relationship on an organizational chart. As an example, there was a genuine nexus whenever:

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

(2) The supervisory licensed or loan that is registered workouts traditional supervisory duties, including, although not restricted to, working out, mentoring, and assessment regarding the loan processor or underwriter worker.