§ 19-14.10-3 - Definitions.
SECTION 19-14.10-3
§ 19-14.10-3 Definitions. – For purposes of this chapter, the following definitions shall apply:
(1) "Depository institution" has the same meaning as insection 3 of the Federal Deposit Insurance Act, and includes any credit union.
(2) "Federal banking agencies" means the Board of Governorsof the Federal Reserve System, the Comptroller of the Currency, the Director ofthe Office of Thrift Supervision, the National Credit Union Administration, andthe Federal Deposit Insurance Corporation.
(3) "Immediate family member" means a spouse, child, sibling,parent, grandparent, or grandchild. This includes stepparents, stepchildren,stepsiblings, and adoptive relationships.
(4) "Individual" means a natural person.
(5) "Loan processor or underwriter" means an individual whoperforms clerical or support duties as an employee at the direction of andsubject to the supervision and instruction of a person licensed as a lender oras a loan broker, or exempt from licensing under chapters 19-14, or 19-14.1.
(ii) For purposes of subsection (5)(i), "clerical or supportduties" may include subsequent to the receipt of an application:
(A) The receipt, collection, distribution, and analysis ofinformation common for the processing or underwriting of a residential mortgageloan; and
(B) Communicating with a consumer to obtain the informationnecessary for the processing or underwriting of a loan, to the extent that suchcommunication does not include offering or negotiating loan rates or terms, orcounseling consumers about residential mortgage loan rates or terms.
(iii) Representatives to the public. An individualengaging solely in loan processor or underwriter activities, shall notrepresent to the public, through advertising or other means of communicating orproviding information including the use of business cards, stationery,brochures, signs, rate lists, or other promotional items, that such individualcan or will perform any of the activities of a mortgage loan originator.
(6) "Mortgage loan originator" means:
(A) An individual who, for compensation or gain or in theexpectation of compensation or gain:
(I) Takes a residential mortgage loan application; or
(II) Offers or negotiates terms of a residential mortgageloan;
(B) Does not include an individual engaged solely as a loanprocessor or underwriter except as otherwise provided in subsection19-14.10-(c);
(C) Does not include a person or entity that only performsreal estate brokerage activities and is licensed or registered in accordancewith Rhode Island law, unless the person or entity is compensated by a lender,a mortgage broker, or other mortgage loan originator or by any agent of suchlender, mortgage broker, or other mortgage loan originator;
(D) Does not include a person or entity solely involved inextensions of credit relating to timeshare plans, as that term is defined in§ 101(53D) of title 11, United States Code, as amended; and
(E) Does not include a person (or its employees) engaged inservicing mortgage loans. For purposes of this exclusion, "servicing mortgageloans" means, on behalf of the note holder, collecting and receiving payments,including payments of principal, interest, escrow amounts, and other sums due,on obligations due and owing to the note holder pursuant to a residentialmortgage loan, and, when the borrower is in default, or in reasonablyforeseeable likelihood of default, working with the borrower on behalf of thenote holder and pursuant to the contract between the person servicing mortgageloans and the note holder, to modify but not refinance, either temporarily orpermanently, the obligations, or otherwise finalizing collection of theobligation through the foreclosure process.
(ii) "Real estate brokerage activity" means any activity thatinvolves offering or providing real estate brokerage services to the public,including:
(A) Acting as a real estate agent or real estate broker for abuyer, seller, lessor, or lessee of real property;
(B) Bringing together parties interested in the sale,purchase, lease, rental, or exchange of real property;
(C) Negotiating, on behalf of any party, any portion of acontract relating to the sale, purchase, lease, rental, or exchange of realproperty (other than in connection with providing financing with respect to anysuch transaction);
(D) Engaging in any activity for which a person engaged inthe activity is required to be registered or licensed as a real estate agent orreal estate broker under any applicable law; and
(E) Offering to engage in any activity, or act in anycapacity, described in subparagraphs (A), (B), (C), or (D) of this section.
(7) "Nationwide Mortgage Licensing System and Registry" meansa mortgage licensing system developed and maintained by the conference of statebank supervisors and the American association of residential mortgageregulators for the licensing and registration of licensed mortgage loanoriginators.
(8) "Nontraditional mortgage product" means any mortgageproduct other than a thirty (30) year fixed rate mortgage.
(9) "Person" means a natural person, corporation, company,limited liability company, partnership, association, or any other entityhowever organized.
(10) "Registered mortgage loan originator" means anyindividual who:
(i) Meets the definition of mortgage loan originator and isan employee of:
(A) A depository institution;
(B) A subsidiary that is:
(I) Owned and controlled by a depository institution; and
(II) Regulated by a Federal banking agency; or
(C) An institution regulated by the farm creditadministration; and
(D) Is registered with, and maintains a unique identifierthrough, the nationwide mortgage licensing system and registry.
(11) "Residential mortgage loan" means any loan primarily forpersonal, family, or household use that is secured by a mortgage, deed oftrust, or other equivalent consensual security interest on a dwelling (asdefined in § 103(v) of the Truth in Lending Act) or residential realestate upon which is constructed or intended to be constructed a dwelling (asso defined).
(12) "Residential real estate" means any real propertylocated in Rhode Island, upon which is constructed or intended to beconstructed a dwelling.
(13) "Unique identifier" means a number or other identifierassigned by protocols established by the nationwide mortgage licensing systemand registry.