6-991. Definitions


In this article, unless the context otherwise requires:


1. "Affiliate" means an entity that directly or indirectly, through intermediaries,
controls, is controlled by or is under common control with the entity specified.


2. "Clerical or support duties" means duties subsequent to the receipt of a
residential mortgage loan application, including both of the following:


(a) The receipt, collection, distribution and analysis of information common for
the processing or underwriting of a residential mortgage loan.


(b) The communication with a consumer to obtain the information necessary for the
processing or underwriting of a loan if the communication does not include offering or
negotiating loan rates or terms or counseling consumers about residential mortgage loan
rates or terms.


3. "Consumer lender" means a person who is licensed pursuant to chapter 5 of this
title.


4. "Continuing education unit" means a fifty minute period of time in a continuing
education course that relates to the mortgage industry or to mortgage transactions,
including courses taken to maintain recognized industry designations.


5. "Depository institution" has the same meaning prescribed in the federal deposit
insurance act (12 United States Code section 1813) and includes credit unions.


6. "Federal banking agency" means the board of governors of the federal reserve
system, the comptroller of the currency, the director of the office of thrift
supervision, the national credit union administration or the federal deposit insurance
corporation.


7. "Immediate family member" means a spouse, child, sibling, parent, grandparent,
grandchild, stepparent, stepchild or stepsibling whether related by adoption or blood.


8. "Judgment" means either:


(a) A final judgment in a court of competent jurisdiction.


(b) A criminal restitution order issued pursuant to section 13-603 or 18 United
States Code section 3663.


(c) An arbitration award that includes findings of fact and conclusions of law,
that has been confirmed and reduced to judgment pursuant to section 12-133 and that was
rendered according to title 12 and the rules of the American arbitration association or
another recognized arbitration body.


9. "Judgment debtor" means any defendant under this article who is the subject of a
judgment.


10. "License" means a license issued under this article.


11. "Licensee" means a person licensed under this article.


12. "Loan originator":


(a) Means a natural person who for compensation or gain or in the expectation of
compensation or gain does any of the following:


(i) Takes a residential mortgage loan application.


(ii) Offers or negotiates terms of a residential mortgage loan.


(iii) On behalf of a borrower, negotiates with a lender or noteholder to obtain a
temporary or permanent modification in an existing residential mortgage loan agreement.


(b) Does not include:


(i) An individual engaged solely as a loan processor or underwriter except as
provided in section 6-991.02.


(ii) A person who only performs real estate brokerage activities and who is
licensed in accordance with title 32, chapter 20, unless the person is compensated by a
lender, a mortgage broker or any other loan originator or by an agent of the lender,
mortgage broker or other loan originator.


(iii) A person solely involved in extensions of credit relating to a timeshare plan
as defined in 11 United States Code section 101(53D).


(iv) A person who makes five or fewer mortgage loans per calendar year.


(v) A person who takes back a purchase money mortgage in connection with the sale
of residential real estate.


(vi) An employer making a mortgage loan to an employee.


13. "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 who is licensed or who is exempt from licensure under article 1
or 2 of this chapter.


14. "Mortgage banker" means a person who is licensed pursuant to article 2 of this
chapter.


15. "Mortgage broker" means a person who is licensed pursuant to article 1 of this
chapter.


16. "Mortgage loan" or "residential mortgage loan" means a loan 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 the truth in lending act (15
United States Code section 1602(v)), or residential real estate on which a dwelling is
constructed or intended to be constructed.


17. "Real estate brokerage activity" means any activity that involves offering or
providing real estate brokerage services to the public, including:


(a) Acting as a real estate salesperson or real estate broker for a buyer, seller,
lessor or lessee of real property.


(b) Bringing together parties interested in the sale, purchase, lease, rental or
exchange of real property.


(c) Negotiating on behalf of any party 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 transaction.


(d) Engaging in any activity for which a person is required to be licensed as a
real estate salesperson or real estate broker under title 32, chapter 20.


(e) Offering to engage in any activity or act in any capacity described in
subdivision (a), (b), (c) or (d) of this paragraph.


18. "Registered loan originator" means any individual who is both of the following:


(a) A loan originator who is registered with and maintains a unique identifier
through the nationwide mortgage licensing system and registry established by the secure
and fair enforcement for mortgage licensing act of 2008 (P.L. 110-289; 122 Stat. 2810; 12
United States Code sections 5101 through 5116) or its successor.


(b) An employee of one of the following:


(i) A depository institution.


(ii) A subsidiary that is owned and controlled by a depository institution and
regulated by a federal banking agency.


(iii) An institution regulated by the farm credit administration.


19. "Residential mortgage loan servicer" means any person who does either of the
following:


(a) On behalf of the noteholder, collects or receives payments, including payments
of principal, interest, escrow monies and other monies due, on obligations due and owing
to the noteholder pursuant to a residential mortgage loan.


(b) When the borrower is in default or in foreseeable likelihood of default, works
on behalf of the noteholder with the borrower to modify the obligations either
temporarily or permanently in order to avoid foreclosure or otherwise to finalize
collection through the foreclosure process.


20. "Residential real estate" means any property that is located in this state and
on which a dwelling is constructed or intended to be constructed.


21. "Unique identifier" means the number assigned to the loan originator by the
nationwide mortgage licensing system and registry or its successor or as the term is used
under the secure and fair enforcement for mortgage licensing act of 2008 (P.L. 110-289;
122 Stat. 2810; 12 United States Code sections 5101 through 5116).