RS 6:1083 Definitions
§1083. Definitions
As used in this Chapter:
(1) "Board" means the Residential Mortgage Lending Board.
(2) "Commissioner" means the commissioner of the office of financial institutions.
(3) "Consumer" means a natural person who enters into or seeks to enter into a residential loan transaction for a personal, family, or household purpose.
(4) "Depository institution" means the same as defined in Section 3 of the Federal Deposit Insurance Act, and includes any credit union.
(5) "Federal banking agencies" means the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, and the Federal Deposit Insurance Corporation.
(6) "Federally related mortgage loan" means an extension of credit to a consumer secured by a first mortgage on residential immovable property located in this state, including: a mobile home which will be immobilized pursuant to R.S. 9:1149.4 and designed principally for the occupancy of from one to four families; and which is one of the following:
(a) An extension of credit made in whole or in part by any lender the deposits or accounts of which are insured by any agency of the federal government, or is made in whole or in part by any lender which is regulated by any agency of the federal government.
(b) An extension of credit made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, by the federal Department of Housing and Urban Development, or any other agency of the federal government or under or in connection with a housing or urban development program administered by the Department of Housing and Urban Development or a housing or related program administered by any other such agency.
(c) An extension of credit intended to be sold by the originating lender to the Federal National Mortgage Association, the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation, or a financial institution from which it is to be purchased by the Federal Home Loan Mortgage Corporation.
(d) An extension of credit made in whole or in part by any creditor, as defined in Section 103(f) of the federal Consumer Credit Protection Act (15 U.S.C. §1602(f)), who makes or invests in consumer real estate loans aggregating more than one million dollars per year.
(7) "Immediate family member" means a spouse, child, sibling, parent, grandparent, grandchild, including stepparent, stepchild, stepsibling, and adoptive relationships.
(7.1) Repealed by Acts 2001, No. 617, §3, eff. June 22, 2001.
(8) "Mortgage broker" or "residential mortgage broker" means any person who, directly or indirectly, for compensation or the expectation of compensation, negotiates, places, or finds, or offers to negotiate, place, or find a residential mortgage loan for another person. "Mortgage broker" also shall include:
(a) An approved Federal Housing Administration loan correspondent.
(b) A residential mortgage lender who closes a residential mortgage loan in his own name but for whom the funding for the loan is provided by a third party lender in a process known as table funding.
(9) "Mortgage lender" or "residential mortgage lender" means any person who, directly or indirectly, originates or makes, or offers to originate or make, a residential mortgage loan for another person.
(10) "Mortgage loan originator" means an individual who for compensation or gain or with the expectation of compensation or gain takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan.
(11) "Mortgage servicer loss mitigation specialist" means a person who on behalf of the holder or mortgagee of a residential mortgage loan assists a borrower to modify or refinance either temporarily or permanently the borrower's obligations in order to avoid default or foreclosure of the residential mortgage loan.
(12) "Nationwide Mortgage Licensing System and Registry", "licensing system", or "NMLS&R" means a mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators or successors thereof, for the state licensing and registration of state-licensed mortgage loan originators and the registration of registered loan originators as provided in P.L. 110-289, Title V, as amended, which licensing system includes but not limited to an online database which receives, collects, and stores application, license, enforcement action, and related information on a multi-state basis.
(13) "Person" means any individual, firm, corporation, partnership, association, trust, or legal or commercial entity, or other group of individuals however organized.
(14) "Principal stockholder" means any person owning ten percent or more of the outstanding stock of a corporate mortgage broker or mortgage lender.
(15) "Real estate brokerage activity" means any activity that involves offering or providing real estate brokerage services to the public, including any of the following:
(a) Acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of immovable property.
(b) Bringing together parties interested in the sale, purchase, lease, rental, or exchange of immovable property.
(c) Negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of immovable property, other than in connection with providing financing with respect to any such transaction.
(d) 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.
(16) "Registered mortgage loan originator" means any individual who meets the definition of mortgage loan originator and is an employee of a depository institution or a subsidiary that is either owned and controlled by a depository institution and regulated by a federal banking agency or an institution regulated by the Farm Credit Administration and is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry. For the purposes of this Paragraph, "employee" shall include a natural person who is an agent of a depository institution or its controlled and regulated subsidiary acting under the management and supervision of the depository institution or its controlled regulated subsidiary and subject to the oversight of a banking agency, but only if:
(a) The natural person enters into a written agreement prohibiting the individual from soliciting, processing, negotiating, or placing a mortgage loan with a person other than the institution or its controlled and regulated subsidiary.
(b) The natural person would not be barred from licensure pursuant to R.S. 6:1088(E)(2), (3), or (4), as determined by the commissioner.
(c) The natural person acknowledges that he is subject to the authority of the commissioner under R.S. 6:1091 and 1092, as applicable.
(d) A financial institution acceptable to the commissioner shall have:
(i) Provided an undertaking of accountability supported by a surety bond equal to one million dollars, to meet the requirement of R.S. 6:1088(G)(1) and to cover all of the natural persons who are considered to be employees under this Section, which undertaking includes full and direct financial responsibility for the loan origination activities of each such natural person.
(ii) Paid an annual fee of one half the license fee for a mortgage loan originator under R.S. 6:1088.2(A)(4) times the number of natural persons who are considered exclusive agents under this Section as of December thirty-first of the preceding year, as determined by the commissioner.
(iii) Provided a business plan acceptable to the commissioner that sets forth the education program for the natural persons, the handling of consumer complaints related to the natural persons, and the supervision of the loan origination activities of the natural persons. The provisions of the business plan shall be the following:
(aa) The commissioner shall have forty-five days in which to accept or deny the business plan from its receipt. If the commissioner does not accept or reject the plan within forty-five days, the plan will be deemed accepted. If the plan is rejected within forty-five days, the commissioner shall make recommendations in writing to the financial institution as to changes in the plan that would render it acceptable.
(bb) If the plan is rejected, the financial institution shall have forty-five days to make recommended changes to the plan and resubmit it to the commissioner for reconsideration.
(cc) The commissioner shall have fifteen days from the receipt of the resubmitted plan to accept or deny the resubmitted plan. If the resubmitted plan is not accepted or rejected within fifteen days, the plan shall be deemed accepted.
(dd) The denial of the plan or dissatisfaction with the substance of the plan shall entitle the applicant to a hearing before the division of administrative law, provided the applicant has filed notice requesting the hearing with the commissioner within fifteen days of the receipt of the commissioner's decision. The commissioner shall forward the request and any supporting documents to the division of administrative law within ten days. Such hearing shall be scheduled to take place within sixty days from the date a request is received by the division of administrative law, unless continued by all parties, and a decision shall be rendered as expeditiously as possible.
(ee) Any applicant aggrieved by the division of administrative law's decision shall be entitled to judicial review pursuant to R.S. 49:950 et seq. in the Nineteenth Judicial District Court, which shall conduct a de novo review. Such action is entitled to priority and preference over all other pending civil matters such that a decision should be rendered as expeditiously as possible.
(17) "Residential immovable property" means any immovable property located in this state upon which is constructed or intended to be constructed a dwelling.
(18) "Residential loan transaction" means any agreement by a consumer with a mortgage broker, mortgage loan originator, or mortgage lender in connection with a residential mortgage loan.
(19) "Residential mortgage lender" means a person who engages in a residential mortgage lending activity as a mortgage broker or mortgage lender, or both.
(20) "Residential mortgage lending activity" means an activity, including electronic activity, engaged in for compensation or with the expectation of compensation in connection with a residential loan transaction, including the origination or funding of a residential mortgage loan and the negotiation and placement, or offering to negotiate, place, or fund a residential mortgage loan for another person.
(21) "Residential mortgage loan" means any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling as defined in 15 U.S.C. 1602(v) or residential immovable property upon which is constructed or intended to be constructed a dwelling as defined in 15 U.S.C. 1602(v).
(22) "State" means any state of the United States, the District of Columbia, or any territory of the United States including Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.
(23) "Unique identifier" means a number or other identifier assigned by protocols established by the Nationwide Mortgage Licensing System and Registry.
Acts 1999, No. 1098, §1, eff. July 9, 1999; Acts 2000, 1st Ex. Sess., No. 34, §1, eff. April 14, 2000; Acts 2001, No. 617, §§1 and 3, eff. June 22, 2001; Acts 2003, No. 875, §1; Acts 2007, No. 36, §1, eff. June 18, 2007; Acts 2009, No. 522, §1, eff. July 31, 2009.