Q Are individuals engaged in mortgage loan modifications required to register on the Nationwide Mortgage Licensing System & Registry (NMLS)?
A No. Employees who are engaged solely in mortgage loan modifications don’t meet the SAFE Act’s two-pronged definition of “mortgage loan originator” (MLO) as one who:
1. Takes a residential mortgage loan application; and
2. Offers or negotiates terms of a residential mortgage loan for compensation or gain.
Neither modifications nor assumptions result in the extinguishment of an existing loan and the replacement by a new loan; instead, the terms of an existing loan are revised or the loan is assumed by a new debtor.
So, employees engaged solely in these activities don’t “take loan applications” within the meaning of the SAFE Act.
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