41.03 - Licensing Exemptions

41.03. Licensing Exemptions

The following are not required to obtain a Mortgage Loan Originator license:

(1) Registered Mortgage Loan Originators.

(2) Any person offering or negotiating a residential mortgage loan with or on behalf of an immediate family member.

(3) Any person offering or negotiating a residential mortgage loan secured by a dwelling that served as the individual's primary residence.

(4) Any person admitted to practice law in the Commonwealth negotiating the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the person's representation of the client, unless the person is compensated by a lender, a mortgage broker, or other Mortgage Loan Originator or by any agent of such lender, mortgage broker, or other Mortgage Loan Originator.

(5) Any person engaged solely as a loan processor or underwriter, unless:

(a) said person is acting as an independent contractor; or

(b) said person is employed by an independent contractor that provides loan processing and underwriting services for entities.

(6) Any person that performs only real estate brokerage activities and is licensed or registered pursuant to M.G.L. c. 112, §§ 87PP through 87DDD½, unless the person is compensated by a lender, a mortgage broker, or other Mortgage Loan Originator or by any agent of such lender, mortgage broker, or other Mortgage Loan Originator.

(7) Any person solely involved in extensions of credit relating to timeshare plans, as that term is defined in 11 U.S.C. § 101(53D).

(8) Any person who otherwise meets the definition of a Mortgage Loan Originator, but who is employed by an organization determined by the Commissioner to be a bona fide nonprofit affordable homeownership organization pursuant to M.G.L. c. 255E, § 2.

(9) Any person who otherwise meets the definition of a Mortgage Loan Originator, but who is employed by, or is operating on behalf of, an instrumentality created by the United States or any state as defined in 209 CMR 41.02.

(Amended by Mass Register Issue 1320, eff. 8/26/2016. Amended by Mass Register Issue 1408, eff. 1/10/2020.)

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