Who must apply for a mortgage originator license under the new law?
The plain language of Chapter 590 indicates that it applies to a mortgage originator who: (1) either is employed by a mortgage lender that is a mortgage broker under FI 11-501(i) or has a net branch office out of which the individual works; (2) directly contacts prospective borrowers for the purpose of negotiating with or advising the prospective borrowers regarding mortgage loan terms and availability; (3) receives compensation on a percentage basis; and (4) is authorized to accept a loan application on behalf of the mortgage lender. If you are an employee of a mortgage lender (that makes mortgage loans), no license is required unless you work out of a net branch and meet the other criteria of a “mortgage originator”.
