Section 493.135 - Engaging in business of mortgage loan originator; license required; exemptions; independent contractor; establishment of licensing rules and interim procedures; date required for obt
MORTGAGE LOAN ORIGINATOR LICENSING ACT (EXCERPT)
Act 75 of 2009
493.135 Engaging in business of mortgage loan originator; license required; exemptions; independent contractor; establishment of licensing rules and interim procedures; date required for obtaining license under act.
Sec. 5.
(1) Subject to subsection (5), unless specifically exempted under subsection (2), beginning July 31, 2010, an individual shall not engage in the business of a mortgage loan originator with respect to any dwelling located in this state without first obtaining and maintaining annually a license under this act. Each licensed mortgage loan originator must register with and maintain a valid unique identifier issued by the nationwide mortgage licensing system and registry.
(2) Each of the following is exempt from this act:
(a) A registered mortgage loan originator, when acting for an entity described section 3(r)(i)(A), (B), or (C).
(b) An individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of that individual.
(c) An individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as his or her residence.
(d) A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, mortgage broker, or other mortgage loan originator or by any agent of a lender, mortgage broker, or other mortgage loan originator.
(3) A loan processor or underwriter who is an independent contractor may not engage in the activities of a loan processor or underwriter unless that independent contractor loan processor or underwriter obtains and maintains a license under subsection (1). Each independent contractor loan processor or underwriter licensed as a mortgage loan originator must have and maintain a valid unique identifier issued by the nationwide mortgage licensing system and registry.
(4) The commissioner may establish licensing rules and interim procedures for licensing and acceptance of applications. For previously registered or licensed individuals, the commissioner may establish expedited review and licensing procedures.
(5) An individual engaged in the business of a mortgage loan originator is not required to obtain and maintain a license under this act until July 31, 2011 if that individual is employed exclusively by a mortgage servicer; if that individual is authorized to perform loan modification activities concerning existing residential mortgage loans, and not to originate new residential mortgage loans or perform any other activities of a mortgage loan originator, on behalf of that mortgage servicer; and if this extension of time is not inconsistent with any guideline, rule, regulation, or interpretative letter of the United States department of housing and urban development concerning the interpretation of the SAFE act and its applicability to loan modification activities.
History: 2009, Act 75, Eff. July 31, 2009
Compiler's Notes: In subsection (2)(a), the phrase "for an entity described section..." evidently should read "for an entity described in section...".