PRIA, Government Policy, Made Personal

Summary

Defines key words used in this chapter so people know what the terms mean. Bureau means the Bureau of Consumer Financial Protection. Federal banking agency means the Federal Reserve Board, the Office of the Comptroller of the Currency, the National Credit Union Administration, and the FDIC. Depository institution has the same meaning as in section 1813 and includes credit unions. Loan originator is a person who takes a residential mortgage loan application and offers or negotiates loan terms for pay. It does not include people who only do clerical work, pure real estate brokers unless paid by a lender or loan originator, or people who only handle timeshare credit. Helping a consumer can include advising on terms, preparing loan packages, or collecting information. Administrative or clerical tasks are getting, sharing, and passing along the information needed to process or underwrite a loan. Real estate brokerage activity means acting as an agent or broker, bringing parties together, negotiating contracts (except financing), doing work that needs a real estate license, or offering to do those things. Loan processor or underwriter is someone who does clerical or support work under the instruction of a state-licensed or registered loan originator, such as collecting and analyzing loan information or contacting consumers for facts but not offering or negotiating loan terms. The Nationwide Mortgage Licensing System and Registry is the licensing system run by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, or any system the Director creates under section 5108. Nontraditional mortgage product means any mortgage product other than a 30-year fixed rate mortgage. Registered and State-licensed loan originators are loan originators who meet specific employment and registration or licensing rules and who keep a unique identifier. Residential mortgage loan is a loan for personal or household use secured by a mortgage or similar lien on a dwelling or land for a dwelling. Director means the Director of the Bureau. State includes the states, DC, U.S. territories, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands. Unique identifier is a permanent ID assigned to track a loan originator’s work and public disciplinary actions and should be used instead of Social Security numbers when possible.

Title 12, §5102

Banks and Banking, Source: USLM XML via OLRC

For purposes of this chapter, the following definitions shall apply:

(1)Bureau

The term “Bureau” means the Bureau of Consumer Financial Protection.

(2)Federal banking agency

The term “Federal banking agency” means the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the National Credit Union Administration, and the Federal Deposit Insurance Corporation.

(3)Depository institution

The term “depository institution” has the same meaning as in section 1813 of this title, and includes any credit union.

(4)Loan originator (5) Loan processor or underwriter

(A)In general

The term “loan originator”— (i)

(ii)does not include any individual who is not otherwise described in clause (i) and who performs purely administrative or clerical tasks on behalf of a person who is described in any such clause;

(iii)does not include a person or entity that only performs real estate brokerage activities and is licensed or registered in accordance with applicable State law, unless the person or entity is compensated by a lender, a mortgage broker, or other loan originator or by any agent of such lender, mortgage broker, or other loan originator; and

(iv)does not include a person or entity solely involved in extensions of credit relating to timeshare plans, as that term is defined in section 101(53D) of title 11.

(B)Other definitions relating to loan originator (C) Administrative or clerical tasks

For purposes of this subsection, 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.

(D)Real estate brokerage activity defined

The term “real estate brokerage activity” means any activity that involves offering or providing real estate brokerage services to the public, including—

(i)acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property;

(ii)bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property;

(iii)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 such transaction);

(iv)engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and

(v)offering to engage in any activity, or act in any capacity, described in clause (i), (ii), (iii), or (iv).

(6)Nationwide mortgage licensing system and registry

The term “Nationwide Mortgage Licensing System and Registry” means a mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the State licensing and registration of State-licensed loan originators and the registration of registered loan originators or any system established by the Director under section 5108 of this title.

(7)Nontraditional mortgage product

The term “nontraditional mortgage product” means any mortgage product other than a 30-year fixed rate mortgage.

(8)Registered loan originator (9) Residential mortgage loan

The term “registered loan originator” means any individual who—

(A)meets the definition of loan originator and is an employee of—

(i)a depository institution;

(ii)a subsidiary that is—

(I)owned and controlled by a depository institution; and

(II)regulated by a Federal banking agency; or

(iii)an institution regulated by the Farm Credit Administration; and

(B)is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry.

(10)Director (11) State

The term “Director” means the Director of the Bureau of Consumer Financial Protection.

(12)State-licensed loan originator (13) Unique identifier

The term “State-licensed loan originator” means any individual who—

(A)is a loan originator;

(B)is not an employee of—

(i)a depository institution;

(ii)a subsidiary that is—

(I)owned and controlled by a depository institution; and

(II)regulated by a Federal banking agency; or

(iii)an institution regulated by the Farm Credit Administration; and

(C)is licensed by a State or by the Director under section 5107 of this title and registered as a loan originator with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 1602(v) of title 15, referred to in par. (9), was redesignated section 1602(w) of title 15 by Pub. L. 111–203, title X, § 1100A(1)(A), July 21, 2010, 124 Stat. 2107.

Amendments

2010—Pub. L. 111–203, § 1100(4)(A), redesignated pars. (2) to (12) as (3) to (13), respectively. Par. (1). Pub. L. 111–203, § 1100(4)(B), added par. (1) and struck out former par. (1). Prior to amendment, text read as follows: “The term ‘Federal banking agencies’ 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, and the Federal Deposit Insurance Corporation.” Par. (2). Pub. L. 111–203, § 1100(4)(B), added par. (2). Former par. (2) redesignated (3). Par. (5). Pub. L. 111–203, § 1100(3), substituted “Director” for “Secretary”. Par. (10). Pub. L. 111–203, § 1100(4)(C), added par. (10) and struck out former par. (10). Prior to amendment, text read as follows: “The term ‘Secretary’ means the Secretary of Housing and Urban Development.” Par. (11)(C). Pub. L. 111–203, § 1100(3), substituted “Director” for “Secretary”. Par. (12)(A)(ii). Pub. L. 111–203, § 1100(2), substituted “Bureau” for “Federal banking agencies”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

Executive Documents

Termination of Trust Territory of the Pacific IslandsFor termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions.

§5102 Definitions