In the final rule they define a Mortgage loan Originator as someone who meets 2 specifications. (1)Takes a residental mortgage loan application; and (2) Offers or negotiates terms of a residential mortgage loan for compensation or gain.

I was just wondering what the definition of Compensation or Gain was. Does that only pertain to MLOs who receive a commission for doing the loan, or would it mean that if a MLO receives a salary they are considered to be negotiating terms for compensation or gain?

Any compensation, including salary. Short of volunteer workers who work for no money, it isn't an out.

If a MLO recevies a salary they are considered to be negotiating terms for compensation or gain.

Thanks Lending Triage!

I know my mortgage lenders need to register but what about the employee in the loan servicing that works with consumers on HAMP workouts? And what about my collection employee who works with consumers on in house workouts?

They help negotiate terms under a workout but there is no formal Application taken - just updated information gathered.

I want to say these employees do not qualify. Thoughts?

Applications do not have to be written. Other regulations apply to workouts. To be safe, I would register anyone who is taking new financial information and negotiating terms. There is no problem with registering someone who did not have to be registered. There IS a problem with not registering those who do.

Better SAFE than sorry (pun intended).

Am I correct in saying that an employee with only approval authority does not meet the definition of a MLO because that person does not meet the two-prong test? For example, a loan officer takes the application and underwrites the loan but needs higher approval authority because of the amount of the loan. The approval authority may sign off on the loan or offer different terms for the loan which is then communicated by the loan officer to the customer.