6-942

6-942. Exemptions

A. This article does not apply to:

1. A person who does business under any other law of this state, or any other state
while regulated by a state agency of such other state, or of the United States, relating
to banks, savings banks, trust companies, savings and loan associations, profit sharing
and pension trusts, credit unions, insurance companies or consumer lenders, or
receiverships, including directly or indirectly making, negotiating or offering to make
or negotiate a mortgage banking loan or a mortgage loan if the mortgage transactions are
regulated by the other law or are under the jurisdiction of a court.

2. A person who makes a mortgage banking loan or a mortgage loan:

(a) With his own monies.

(b) For his own investment.

(d) And is not engaged in the business of making mortgage loans or mortgage banking
loans.

3. A person who funds a mortgage loan or mortgage banking loan which has been
originated and processed by a licensee, by a mortgage broker licensed in this state or by
a person exempt under paragraph 1 of this subsection and who meets all of the following:

(a) Does not maintain a place of business in this state in connection with funding
mortgage loans or mortgage banking loans.

(b) Does not directly or indirectly solicit borrowers in this state for the purpose
of making mortgage loans.

4. A person who, as seller of real property, receives one or more mortgages or
deeds of trust as security for a purchase money obligation.

5. A person who is licensed to practice law in this state, but is not actively and
principally engaged in the business of negotiating mortgage banking loans or mortgage
loans, if this person renders services in the course of his practice as an attorney at
law.

6. A person who receives a mortgage or deed of trust on real property as security
for an obligation payable on an installment or deferred payment basis and arising out of
materials furnished or services rendered in the improvement of that real property or any
lien created without the consent of the owner of such real property.

7. A person who is licensed pursuant to article 1 or 3 of this chapter.

8. An agency of any state or of the United States.

9. A nonprofit federally tax exempt corporation certified by the United States
small business administration and organized to promote economic development within this
state whose primary activity consists of providing financing for business expansion.

10. An institutional investor as defined in section 6-971 unless the institutional
investor makes either:

(a) A mortgage loan other than a commercial mortgage loan as defined in section
6-971.

(b) A mortgage banking loan other than a commercial mortgage loan as defined in
section 6-971.

B. Subsidiaries and service corporations of institutions exempt under subsection A,
paragraph 1 of this section shall not be exempt and shall be subject to the provisions of
this article unless preempted by federal law.

C. For the purposes of:

1. Subsection A, paragraph 3 of this section, "originate" includes loans closed in
a name other than that of the licensee, a mortgage broker licensed in this state or
exempt person only if the person in whose name the loan is closed meets the other
requirements of subsection A, paragraph 3 of this section.

2. Subsection A, paragraph 3, subdivision (c) of this section, negotiation of
mortgage loans does not include setting the terms under which a person may buy a mortgage
loan originated by a licensee or a person exempt under subsection A, paragraph 1 of this
section.