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

The examples listed 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 are not all-inclusive. They illustrate just the presssing issue described plus don’t illustrate any kind of conditions 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 of the component.

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

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

(2) Any individual that works 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 regarding the the creating of the credit choice and who’s a separate specialist, as that term is defined in В§ 1008.23; and

(4) Any person that communicates having a customer to acquire information needed for creating a credit choice and that is a separate specialist, 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, for instance:

(1) works only clerical or help duties (i.e., the mortgage processor’s or underwriter’s tasks usually do not consist of, e.g., providing 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 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 ag e)(6) ( federal government workers exclusion), or (e)(7) (nonprofit exclusion).

(2) Performs just clerical or help duties as a member of staff of a home loan loan provider or home loan brokerage company, and whom executes those duties during the direction of and susceptible to the guidance and instruction of somebody who is utilized because of the exact same company and who’s certified in conformity with В§ 1008.103(a) (state licensing 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 home loan brokerage companies under a agreement between your loan processing or underwriting business plus the mortgage brokers or mortgage brokerage companies, offered the employee works only clerical or help duties and executes those duties just during the direction of and susceptible to the guidance and instruction of a loan that is licensed worker of the identical loan processing and underwriting business.

(4) Is a person who will not otherwise perform those activities of that loan originator and it is perhaps not active in the receipt, collection, distribution, or analysis of information typical for the processing or underwriting of the domestic home mortgage, nor is with in interaction aided by the customer to have such information.

(c) to be able to conclude that somebody who executes clerical or help duties does therefore in the direction of and susceptible to the direction and instruction of financing originator that is certified or registered in accordance 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 ( payday loans Alabama ag e)(7)), there should be a nexus that is actual the licensed or registered loan originator’s (or excluded person’s) way, direction, and instruction as well as the loan processor or underwriter’s tasks. This actual nexus should be significantly more than a nominal relationship for a chart that is organizational. For instance, there clearly 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 conventional supervisory duties, including, although not limited by, working out, mentoring, and assessment regarding the loan processor or underwriter worker.