12 USC 5102 - Definitions

U.S Code last checked for updates: May 02, 2024

§ 5102.

Definitions

For purposes of this chapter, the following definitions shall apply:

(1)

Bureau

(2)

Federal banking agency

(3)

Depository institution

(4)

Loan originator

(A)

In general

The term “loan originator”—

(i)

means an individual who—

(I)

takes a residential mortgage loan application; and

(II)

offers or negotiates terms of a residential mortgage loan for compensation or gain;

(ii)

does not include any individual who is not otherwise described in clause (i) and who performs purely administrative or clerical tasks on behalf of a person who is described in any such clause;

(iii)

does not include a person or entity that only performs real estate brokerage activities and is licensed or registered in accordance with applicable State law, unless the person or entity is compensated by a lender, a mortgage broker, or other loan originator or by any agent of such lender, mortgage broker, or other loan originator; and

(iv)

does not include a person or entity solely involved in extensions of credit relating to timeshare plans, as that term is defined in section 101(53D) of title 11.

(B)

Other definitions relating to loan originator

(C)

Administrative or clerical tasks

(D)

Real estate brokerage activity defined

The term “real estate brokerage activity” means any activity that involves offering or providing real estate brokerage services to the public, including—

(i)

acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property;

(ii)

bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property;

(iii)

negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property (other than in connection with providing financing with respect to any such transaction);

(iv)

engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and

(v)

offering to engage in any activity, or act in any capacity, described in clause (i), (ii), (iii), or (iv).

(5)

Loan processor or underwriter

(A)

In general

The term “loan processor or underwriter” means an individual who performs clerical or support duties at the direction of and subject to the supervision and instruction of—

(i)

a State-licensed loan originator; or

(ii)

a registered loan originator.

(B)

Clerical or support duties

For purposes of subparagraph (A), the term “clerical or support duties” may include—

(i)

the receipt, collection, distribution, and analysis of information common for the processing or underwriting of a residential mortgage loan; and

(ii)

communicating with a consumer to obtain the information necessary for the processing or underwriting of a loan, to the extent that such communication does not include offering or negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or terms.

(6)

Nationwide mortgage licensing system and registry

(7)

Nontraditional mortgage product

(8)

Registered loan originator

The term “registered loan originator” means any individual who—

(A)

meets the definition of loan originator and is an employee of—

(i)

a depository institution;

(ii)

a subsidiary that is—

(I)

owned and controlled by a depository institution; and

(II)

regulated by a Federal banking agency; or

(iii)

an institution regulated by the Farm Credit Administration; and

(B)

is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry.

(9)

Residential mortgage loan

(10)

Director

(11)

State

(12)

State-licensed loan originator

The term “State-licensed loan originator” means any individual who—

(A)

is a loan originator;

(B)

is not an employee of—

(i)

a depository institution;

(ii)

a subsidiary that is—

(I)

owned and controlled by a depository institution; and

(II)

regulated by a Federal banking agency; or

(iii)

an institution regulated by the Farm Credit Administration; and

(C)

is licensed by a State or by the Director under section 5107 of this title and registered as a loan originator with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry.

(13)

Unique identifier

(A)

In general

The term “unique identifier” means a number or other identifier that—

(i)

permanently identifies a loan originator;

(ii)

is assigned by protocols established by the Nationwide Mortgage Licensing System and Registry and the Bureau to facilitate electronic tracking of loan originators and uniform identification of, and public access to, the employment history of and the publicly adjudicated disciplinary and enforcement actions against loan originators; and

(iii)

shall not be used for purposes other than those set forth under this chapter.

(B)

Responsibility of States

(Pub. L. 110–289, div. A, title V, § 1503, July 30, 2008, 122 Stat. 2811; Pub. L. 111–203, title X, § 1100(2)–(4), July 21, 2010, 124 Stat. 2106.)

cite as: 12 USC 5102