Map who must hold a state residential mortgage loan originator license
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- List each individual who takes a residential mortgage application or offers or negotiates its terms, and whether the file shows an NMLSR identifier and a state license. Do not decide that a person is licensed.
- What the lawyer must review
- 12 C.F.R. § 1008.103 is about individuals and residential mortgage loans, not about a corporate loan and not about the lender as an entity. For a state to have a SAFE-compliant program, the state must prohibit an individual from engaging in the business of a loan originator for a dwelling or residential real estate unless the individual registers through the NMLSR, obtains a unique identifier, and obtains and maintains a state loan originator license, except as paragraph (e) provides. Engaging in the business means, in a commercial context and habitually or repeatedly, taking an application and offering or negotiating terms for compensation or gain, or representing to the public that the individual can do so. Paragraph (e) lists individuals a state need not license, including a person who only performs real-estate brokerage and is not paid by a lender or originator, a person involved only in timeshare credit, and an employee of a covered financial institution who is registered and holds a unique identifier. The remainder of paragraph (e), including the housing-finance-agency definition, was not finished. You read it before you treat anyone as exempt. Opinion 512: you decide who needs a license.
- Written for / version
- United States versionUSCth
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes identifying points for review. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Obtain and inspect the relevant current official register or search result. Confirm identities, interests and the date and scope of the search.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.