Posted by sigtogo/OR on 8/16/12 9:29am
Msg #430662

SAFE ACT continuation on Reverse Mortgages

http://www.hud.gov/offices/hsg/ramh/safe/smlicact.cfm

Per HUD:
"HUD interprets an individual who "takes a residential mortgage loan application" to exclude an individual who performs purely administrative or clerical tasks, such as physically handling a completed application form or transmitting a completed form to a lender on behalf of a prospective borrower."

I visited with my fav RM lender who in conversation with their attorneys interpret our involvement to be clerical. Their note to me along with the above link:
"A person doing the “clerical” tasks, such as having the paperwork signed, does not fall under the title “loan originator” and is not responsible for the actual negotiation of loan terms."

have a great day everyone! Donna

Reply by Pro Mobile Notary on 8/16/12 9:46am
Msg #430664

Yes, the interpretation you cited is partially correct.

The only RESPA exemption from being licensed is for salaried W-2 employees doing clerical work on the RM apps.

As an independent contractor notaries are not exempt from the legal requirement to have a loan originator's license.

Reply by VT_Syrup on 8/16/12 9:51am
Msg #430665

Pro Mobile Notary, if the requirement is so strict, do you refuse to get copies of mortgage applications signed when they are included in the typical refinance package?

Reply by MW/VA on 8/16/12 9:54am
Msg #430666

Thanks, Donna. I know with your background you have

provided us with accurate info. That's always been my interpretation, also. :-)

Reply by ikando on 8/16/12 10:59am
Msg #430676

Re: Thanks, Donna. I know with your background you have

Could the hang up be the phrase, "take an application"? Sometimes bureaucrats think they're saying something, but it can be interpreted differently by an outsider. That's why there are so many law books.

Reply by MW/VA on 8/16/12 11:10am
Msg #430680

See Renee's post of the Act in msg. 430648 n/m