Posted by ChrisseyNJ on 6/26/12 6:49am
Msg #424663

Dont shoot the messenger

For background thread, see Msg #415669

http://www.newjerseynotaryassociation.org/NJNASAFEAct.html

Reply by MW/VA on 6/26/12 9:31am
Msg #424678

I can see that applying the doing RESPA applications. I

don't see it applying to the NSA aspect, however. Just my opinion, of course.

Reply by ChrisseyNJ on 6/26/12 10:16am
Msg #424683

Re: I can see that applying the doing RESPA applications. I

This applies only to the "application" (processing/underwriting) phase, NOT the settlement/closing phase per: Appendix A of Part 1008 (b)(2)(ii)
(ii) An individual does not take a loan application merely because the individual performs any of the following actions

(redacted for space)

(ii) Arranging the loan closing or other aspects of the loan process, including by communicating with a borrower or prospective borrower about those arrangements, provided that any communication that includes a discussion about loan terms only verifies terms already agreed to by the borrower or prospective borrower;

Reply by sigtogo/OR on 6/26/12 10:51am
Msg #424684

according to this, we are involved in the loan process

Chrissey, this part of your post definitely covers us. thank you : )


(ii) An individual does not take a loan application merely because the individual performs any of the following actions:

(ii) Arranging the loan closing or other aspects of the loan process, including by communicating with a borrower or prospective borrower about those arrangements, provided that any communication that includes a discussion about loan terms only verifies terms already agreed to by the borrower or prospective borrower;

NSA's are involved in the "other aspects of the loan process, including communicating,etc...

I'd say we're good!

My opinion and interpretation of the above, of course!

Reply by sigtogo/OR on 6/26/12 10:52am
Msg #424685

to be clear: process as opposed to origination : ) n/m

Reply by Linda_H/FL on 6/26/12 11:21am
Msg #424689

Florida Statute 494 defines thetwo

"(16) “Loan originator” means an individual who, directly or indirectly, solicits or offers to solicit a mortgage loan, accepts or offers to accept an application for a mortgage loan, negotiates or offers to negotiate the terms or conditions of a new or existing mortgage loan on behalf of a borrower or lender, or negotiates or offers to negotiate the sale of an existing mortgage loan to a noninstitutional investor for compensation or gain. The term includes an individual who is required to be licensed as a loan originator under the S.A.F.E. Mortgage Licensing Act of 2008. The term does not include an employee of a mortgage broker or mortgage lender whose duties are limited to physically handling a completed application form or transmitting a completed application form to a lender on behalf of a prospective borrower.

(17) “Loan processing” means:
(a) Receiving, collecting, distributing, and analyzing information common for the processing of a mortgage loan; or
(b) Communicating with a consumer to obtain information necessary for the processing of a mortgage loan if such communication does not include offering or negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or terms."

Providing we strictly limit our involvement to comply with #17 I think we're okay down here. Again, as I said in the previously cited thread, I have never done a RESPA signing where I had to complete the app with the borrowers - it was done ahead of time with the loan officer (originator). And honestly, I have more responsibility as a signing agent during a loan signing than I ever have with the RESPA signings.

JMO

Reply by ChrisseyNJ on 6/26/12 12:06pm
Msg #424696

Re: Florida Statute 494 defines thetwo

The Federal SAFE Act takes precedence over any State definitions. States may further define or impose more strict guidelines, but not lesser.

As cited, refer to Part 1008, Appendix C of the Federal law for the specifics of "CONTRACTOR"... none of the other definitions (in Part 1007) of MLO/underwriters/processors apply to "contractors." Contractors are held and defined separately. Any of us taking an "application" signing is a contractor.

Limit your involvement to the "settlement/closing" and stay clear of any applications.

Reply by MW/VA on 6/26/12 11:48am
Msg #424694

Yes, we are not involved in the loan "process" by the

definition of what this involves.

Reply by NJDiva on 6/26/12 2:20pm
Msg #424707

I did what was called by the title company "An application"

It all seemed strange because they had doc's as if it were a refinance but requested I pick up the following:

Copies of the:
Mortgage
HUD
Note
Maybe insurance policy?

I don't remember what else.

One person was under the assumption that it was the closing. I needed to call for some reason (maybe to confirm doc's needed) and was told over the speaker phone so that the bo could hear that it was only the application process.

It all seemed really bizarre. Maybe this is what Chrissey is referring to?

Reply by ikando on 6/26/12 3:46pm
Msg #424723

Re: I did what was called by the title company "An application"

I quote from the referenced article:

To test your current activities for compliance to the SAFE Act, consider these questions:
1. Do you receive compensation or gain for any task related to mortgage loan origination?
2.Are you involved in the application for a loan related to residential property?

As an NSA, I answer No definitely to #1, but "involved" in #2 is too broad to define for me whether I am or not. Analogy: As an employee, I'm involved with other people in an office, but could be "involved" with one person in particular. So am I involved by handling the paperwork, or am I "involved" by negotiating the loan? Yes to the former; No to the latter.

Additionally, in researching further for the reference to contractor (which I haven't found yet), I ran across the information that the NMLS is the only entity allowed to register/train people under the SAFE Act. Here's a quote from that site:

"NMLS was created by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) and begun operations in January 2008. It is owned and operated by the State Regulatory Registry LLC (SRR), a wholly owned subsidiary of CSBS. "

This is how I located the above information: http://www.ffiec.gov/safeact.htm, then in the 2nd paragraph, read:

The Wall Street Reform and Consumer Financial Protection Act of 2010 ("the Dodd-Frank Act") transferred the authority to develop and maintain the Federal Registry from the Agencies to the CFPB. The SAFE Act statute requires individual mortgage loan originators employed by "Agency-regulated" institutions to be registered with the Nationwide Mortgage Licensing System and Registry (Federal Registry), a database established previously by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators to support the licensing of mortgage loan originators by the States.

To access the Registry click the following link: http://mortgage.nationwidelicensingsystem.org/fedreg/Pages/default.aspx.

Sounds like the fox in the hen house. Don't see it having any affect on me as a disinterested party. JMHO

Reply by ChrisseyNJ on 6/26/12 4:32pm
Msg #424729

Link to the entire Act

Is here:
https://www.federalregister.gov/articles/2011/12/19/2011-31730/safe-mortgage-licensing-act-regulations-g-and-h#p-440

If you get hung up in Part 1007, you will make the same assumptions many lenders have made this whole time. Go down to Part 1008... definitions there are not identical to 1007. Additionally, Appendix C clearly identifies "contractors" and lists the activities requiring licensing.

The Act was written in plain language on purpose. There isnt much left to "interpretation" when reading the applicable information to your role as a contractor (as opposed to a W2 employee of a lender.)

The fox is NOT in the hen house. Im sharing information. Thats all. Additionally, even licensed loan officers are pretty much excluded from "contracting" these jobs as well (See HUD 4060.1, Chapter 2)

Reply by BrendaTx on 6/26/12 7:03pm
Msg #424742

Chrissey -

what brought this to your attention? Since you are in a position of authority to some degree in the NJ group, what will your next step be?

I feel that you are sharing information that you see as a serious issue to notary signing agents. I thank you for it and hope that all will read it and determine if it applies to him or her. I have never done an app package, so I cannot comment.

Reply by ChrisseyNJ on 6/26/12 4:27pm
Msg #424728

Re: I did what was called by the title company "An application"

NJDiva,
Not seeing the documents, I would still say what you described is NOT subject to the SAFE Act.

The easiest way to know if it is in the "settlement/closing" phase (expressly exempted from licensing) is the package would NOT contain a HUD, Note, Mortgage or TIL. The mere presence of a 1003 (application) does not provide sole proof that it is an "application" assignment.

If your package contains a 1003, but NOT any of the other "closing" documents as indicated above, ask the questions to make sure you are not participating in an activity requiring licensing.

Reply by NJDiva on 6/26/12 7:26pm
Msg #424746

That's what I'm saying Chrissey...

The request that the title company wanted from the bo was the HUD, Note, Mortgage doc's from the PREVIOUS loan. That's what I'm saying, it was very peculiar. It wasn't anything I was ever subjected to.