How is a net branch office defined?
(FI 11-601)(l) (1) “Net branch office” means a branch office of a mortgage lender that is separately licensed under Title 11, Subtitle 5 if: (i) As a condition of establishing the net branch, the mortgage lender requires the mortgage originator who works in or out of the branch office, or a person controlled by the mortgage originator, to pay an application, licensing, franchise, start-up, or other fee to the mortgage lender or directly to the Commissioner; (ii) The overhead expenses of the net branch are paid in whole or in part by: 1. Mortgage originator who works in or out of the branch office; or 2. A person controlled by a mortgage originator who works in or out of the branch office; or (iii) The mortgage lender is not: 1. An obligor on a lease of the premises of the branch location; or 2. An owner of the premises of the branch location. (2) “Net branch office” does not include the mortgage lender’s principal office.
