N.Y. Comp. Codes R. & Regs. tit. 3 § 420.3

Current through Register Vol. 46, No. 25, June 18, 2024

Section 420.3 - Definitions

For purposes of this Part:

(a)Annual expiration date with respect to any MLO means December 31st of each year.

(b)Hour means a unit of time as defined by the NMLS.

(c)Immediate family member means a spouse, child, sibling, parent, grandparent, or grandchild. The term includes stepparents, stepchildren, stepsiblings and adoptive relationships.

(d)Individual means a natural person.

(e) Loan processor or underwriter.

(1)Loan processor or underwriter means an individual who performs clerical or support duties as an employee at the direction of, and subject to the supervision and instruction of, an individual licensed, or exempt from licensing, under this Part, provided that such individual does not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that such individual can or will perform any of the activities of a mortgage loan originator.

(2) For purposes of this subdivision, clerical or support duties may include, subsequent to the receipt of an application:

(i) the receipt, collection, distribution, and analysis of information common for the processing or underwriting of a residential mortgage loan; or

(ii) communicating with a consumer to obtain the information necessary for the processing or underwriting of a loan, to the extent that such communication does not include offering or negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or terms.

(f)Manufactured home means any manufactured home as defined in Uniform Commercial Code section 9-102(53) or mobile home included in the definition of dwelling as defined in section 1203(v) of the Truth in Lending Act.

(g)Mortgage loan originator (MLO):

(1) means an individual who for compensation or gain or in the expectation of compensation or gain:

(i) takes a residential mortgage loan application; or

(ii) offers or negotiates terms of a residential mortgage loan;

(2) MLO does not include:

(i) any individual engaged solely as a loan processor or underwriter except as otherwise provided in section 599-c(4) of article 12-E;

(ii) an individual who performs only real estate brokerage activities and is licensed or registered in accordance with applicable New York law, unless the individual 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; and

(iii) an individual involved solely in extensions of credit relating to timeshare plans, as that term is defined in section 101(53D) of title 11, United States Code.

(3) For purposes of this Part, real estate brokerage activity means any activity that involves offering or providing real estate brokerage services to the public, including:

(i) acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property;

(ii) bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property;

(iii) negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property (other than in connection with providing financing with respect to any such transaction);

(iv) engaging in any activity for which an individual engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and

(v) offering to engage in any activity, or act in any capacity, described in subparagraph (i), (ii), (iii), or (iv) of this paragraph.

(h)Nationwide Mortgage Licensing System and Registry (NMLS) means a mortgage licensing system and registry developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of licensed mortgage loan originators.

(i)Originating entity means an individual or entity licensed or registered pursuant to article 12-D, an individual or entity engaged in the origination of residential mortgage loans secured by manufactured homes licensed under article IX or article 11-B or such other employer of mortgage loan originators as the superintendent may approve in writing.

(j)Prior version means article 12-E as in effect from January 1, 2008 to July 10, 2009.

(k)Residential mortgage loan shall mean a loan to a natural person made primarily for personal, family or household use, secured by either a mortgage, deed of trustor other equivalent consensual security interest on a dwelling (as defined in section 1203[v] of the Truth in Lending Act) or residential real property or any certificate of stock or other evidence of ownership in, and proprietary lease from, a corporation or partnership formed for the purpose of cooperative ownership of residential real property and shall include any refinance and, to the extent required by the secretary of the U.S. Department of Housing and Urban Development, modification of any such existing loan.

(l)Registered mortgage loan originator means any individual who:

(1) meets the definition of mortgage loan originator and is an employee of:

(i) a depository institution;

(ii) a subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency; or

(iii) an institution regulated by the Farm Credit Administration; and

(2) is registered with, and maintains a unique identifier through, the NMLS under regulations adopted by the federal banking regulators;

(3) for purposes of this definition, the term depository institution shall have the same meaning as in section three of the Federal Deposit Insurance Act, and includes any credit union.

(m)Residential real property shall mean real property located in this State improved by a one-to-four family residence or residential unit in a building used or occupied, or intended to be used or occupied, wholly or partly, as the home or residence of one or more persons, but shall not refer to unimproved real property upon which such residence is to be constructed.

(n)Unique identifier means a number or other identifier assigned by protocols established by the NMLS.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 420.3

Adopted, New York State Register October 1, 2014/Volume XXXVI, Issue 39, eff.10/1/2014