Under the SAFE Act, exactly who is considered to be a Mortgage loan originator?
The SAFE Act defines a “mortgage loan originator” as an individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain. Under the SAFE Act, an individual assists a consumer in obtaining or applying to obtain a residential mortgage loan by, among other things, advising on loan terms (including rates, fees, other costs), preparing loan packages, or collecting information on behalf of the consumer with regard to a residential mortgage loan. The Department of Housing and Urban Development (HUD) has further clarified that an individual cannot avoid licensure requirements by having someone else “take” the application. HUD also clarified the limited contexts where offering or negotiating residential mortgage loan terms would not make an individual a mortgage loan originator: • Offering or negotiating terms of a residential mortgage loan only with or on behalf of an immediate family member. • Providing financi
