Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 41.00 - The Licensing Of Mortgage Loan Originators › Section 41.02 - Definitions

Current through Register 1525, July 5, 2024
As used in
				209 CMR 41.00 the following
				words shall, unless the context otherwise requires, have the following
				meanings:
Applicant
means any Mortgage Loan
				Originator who is required to be licensed under the provisions of M.G.L. c.
				255F, § 2.
Clerical or Support Duties
may include
				the following activities, conducted subsequent to the receipt of an
				application:
(a) the receipt, collection, distribution, and analysis of
				information common for the processing or underwriting of a residential mortgage
				loan; and
(b) 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.
Commissioner
means the Commissioner of
				Banks.
Depository Institution
means
				"depository institution" as defined in § 3 of the Federal Deposit
				Insurance Act, and shall include credit unions.
Division
means the Division of
				Banks.
Employing Entity
means the Entity with
				whom the Mortgage Loan Originator is employed.
Entity
means a mortgage broker and/or
				mortgage lender that is licensed under M.G.L. c. 255E.
Federal Banking Agencies
means the
				Board of Governors of the Federal Reserve System, the Comptroller of the
				Currency, the National Credit Union Administration, and the Federal Deposit
				Insurance Corporation.
Immediate Family Member
means a
				spouse, child, step child, adopted child, sibling, step sibling, adopted
				sibling, parent, step parent, adopted parent, grandparent, or
				grandchild.
Individual
means a natural
				person.
Licensee
means any person who is
				licensed by the Commissioner as a Mortgage Loan Originator under M.G.L. c. 255F
				and
				209 CMR 41.00.
Loan Processor or Underwriter
means an
				individual who performs clerical or support duties as an employee at the
				direction of and subject to the supervision and instruction of a person
				licensed, or exempt from licensing under
				209 CMR 41.00; provided,
				however, that said person shall not represent to the public, through
				advertising or other means of communicating or providing information including,
				but not limited to, the use of business cards, stationery, brochures, signs,
				rate lists, or other promotional items, that such individual is licensed or
				otherwise authorized by law to perform any of the activities of a Mortgage Loan
				Originator or that such person intends to perform any of the activities of a
				Mortgage Loan Originator.
Mortgage Loan Originator
means a
				natural person who is employed by no more than one entity and for compensation
				or gain or in the expectation of compensation or gain:
(a) takes a residential mortgage loan application; or
(b) offers or negotiates terms of a residential mortgage loan.
NMLS
means the Nationwide Multi-State
				Licensing System & Registry, a multi state licensing system owned and
				operated by the State Regulatory Registry LLC (SRR), a wholly owned subsidiary
				of the Conference of State Bank Supervisors (CSBS), an association of state
				financial services regulators.
Nontraditional Mortgage Product
means
				any mortgage product other than a 30-year fixed rate mortgage.
Person
means a natural person,
				corporation, company, limited liability company, partnership, or
				association.
Real Estate Brokerage Activity
means
				any activity involving offering or providing real estate brokerage services to
				the public, including without limitation:
(a) acting as a real estate agent or real estate broker for a
				buyer, seller, lessor, or lessee of real property;
(b) facilitating the sale, purchase, lease, rental, or exchange
				of real property;
(c) negotiating, on behalf of any person, 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;
(d) engaging in any activity for which a registration or
				license as a real estate agent or real estate broker is required; and
(e) offering to engage in any activity, or act in any capacity,
				described in 209 CMR 41.02:
Real Estate Brokerage
				Activity
(a) through (d).
Registered Mortgage Loan Originator
means any individual who:
(a) meets the definition of Mortgage Loan Originator and is an
				employee of:
1. a depository institution;
2. a subsidiary that is:
a. owned and controlled by a depository institution; and b.
				regulated by a federal banking agency; or
3. an institution regulated by the Farm Credit Administration;
				and
(b) is registered with, and maintains a unique identifier
				through, the NMLS.
Residential Mortgage Loan
means any
				loan primarily for personal, family, or household use that is secured by a
				mortgage, deed of trust, or other equivalent consensual security interest on a
				dwelling as defined in § 103(v) of the Truth in Lending Act,
				15 U.S.C. §
									1602(v) or residential real
				estate upon which is constructed or intended to be constructed a dwelling as so
				defined.
Residential Real Estate
means any real
				property located in the Commonwealth upon which is constructed or intended to
				be constructed a dwelling.
Termination
means the ending of a
				Mortgage Loan Originator's employment with an Employing Entity, including but
				not limited to: voluntary resignation; discharge for cause; dismissal; forced
				resignation; layoff.
Unique Identifier
means a number or
				other identifier assigned by protocols established by the
				NMLS.