A: Beginning January 1, 2005, all mortgage loan originators must be registered by the licensee or registrant for whom they work prior to working in that capacity. A licensee or registrant who was licensed prior to January 1, 2005, and who retained the services of a mortgage loan originator prior to January 1, 2005, may continue to retain the services of the mortgage loan originator until the Commissioner has acted upon the registration form submitted by the licensee or registrant, provided that the registration form is submitted within three (3) months after January 1, 2005.

A: Public Chapter 747 defines mortgage loan originator as: 

• an individual;
   
• who works for one licensee or registrant and is subject to the direct supervision and control of that licensee or registrant;
   
• who, in exchange for compensation from that licensee/registrant, performs any one or more of the following acts:  solicits, processes, places, negotiates or originates mortgage loans for others, or offers to solicit, process, place, negotiate or originate mortgage loans for others or who closes mortgage loans which may be in the mortgage loan broker’s own name with funds provided by others and which loans are thereafter assigned to the person providing the funding of such loans; and,
   
• who performs any of these acts through contact with the borrower or potential borrower.

Examples of the types of activities which the Department would consider to be included within the definition of “mortgage loan originator” are: 

• soliciting or offering to make a mortgage loan;
   
• explaining or recommending specific terms, conditions or benefits of any mortgage loan available from or through a licensee or registrant, whether or not the borrower has made or makes an application;
   
• obtaining personal or financial information from the borrower;
   
• assisting the borrower with the preparation of a mortgage loan application or other documents; or,
   
• explaining any term or aspect of any disclosure or agreement given at or after a mortgage loan application is received.

A: Public Chapter 747 goes on to provide that the term “mortgage loan originator” does not include an employee of a licensee or registrant whose job responsibilities are limited to clerical tasks.  The Department interprets clerical tasks to include such tasks as: 

typing documents from drafts prepared by others, answering telephones, making appointments and maintaining schedules and calendars for others, operating office machinery, opening and routing mail, mailing correspondence, maintaining office supplies and inventory, and maintaining files.

The Department certainly recognizes that an employee who engages in clerical tasks such as those listed above might very well have contact with the borrower or potential borrower.  Provided that the contact is limited to contact in a clerical capacity, that employee would not need to be registered.

Additionally, the Department has determined that the definition of mortgage loan originator does not include those “back office” employees of a licensee or registrant whose job duties are limited to underwriting tasks.  The Department considers underwriting tasks to include:

analyzing the risk involved in making the mortgage loan to determine whether the risk is acceptable to the lender, including the evaluation of the property as outlined in the appraisal report, and of the borrower’s ability and willingness to repay the mortgage loan.

In making a determination whether to register an employee, a licensee or registrant should review the job duties and responsibilities of the employee.  Obviously, an employee whose job duties fall within the definition of mortgage loan originator as discussed above must be registered.  An employee, however, whose job duties are limited to clerical tasks would not need to be registered, even if the employee, in the course of performing those clerical tasks, might have contact with a borrower.  Additionally, “back office” employees who engage solely in underwriting tasks would not be subject to registration. 

A: The proposed fee is one hundred dollars ($100.00) per mortgage loan originator.

A: The registration form must be completed by the licensee or registrant for whom the mortgage loan originator provides services. Each registration form submitted must be signed by the managing principal of the licensee or registrant. Each registration form provides space to list up to six mortgage loan originators, and the form may be copied as needed; however, licensees and registrants are encouraged to submit an electronic file with required census information (the same information requested on the registration form) for all mortgage loan originators the licensee or registrant intends to register. The managing principal must sign and have notarized at least one form when submitting an electronic file containing multiple mortgage loan originators.