2006 Louisiana Laws - 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.

(3.1)  "Federally related mortgage loan" means an extension of credit to a consumer secured by a first mortgage on residential immovable property, including:  a mobile home which will be immobilized pursuant to R.S. 9:1149.4, located in this state, 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.

(4)  "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.

(5)  "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.

(6)  "Originator" means a natural person who is an employee of a mortgage broker, mortgage lender, or person exempt from licensure, who is not acting as a mortgage broker as defined in this Section or as a mortgage lender as defined in this Section, who interviews the consumer in connection with the consumer's application for a residential mortgage loan.  "Originator" does not include employees of a licensed mortgage broker or mortgage lender, or employees of a person who is exempt from licensure under the provisions of Part II of this Chapter, who perform clerical duties in connection with residential mortgage loan transactions, including but not limited to collecting financial information and other related documents that are part of the application process, ordering verifications of employment, verifications of deposits, requests for mortgage payoffs, and other loan verifications, appraisals, inspections, or engineering reports, or who perform the functions of a loan processor, at the direction of and subject to the supervision of the mortgage broker, mortgage lender, originator, or person exempt from licensure, who is responsible for such direction and supervision.

(7)  "Person" means any individual, firm, corporation, partnership, association, trust, or legal or commercial entity, or other group of individuals however organized.

(7.1)  Repealed by Acts 2001, No. 617, §3, eff. June 22, 2001.

(8)  "Principal stockholder" means any person owning ten percent or more of the outstanding stock of a corporate mortgage broker or mortgage lender.

(9)  "Residential loan transaction" means any agreement by a consumer with a mortgage broker or mortgage lender in connection with a residential mortgage loan.

(10)  "Residential mortgage lender" means a person who engages in a residential mortgage lending activity as a mortgage broker or mortgage lender, or both.

(11)  "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 find a residential mortgage loan for another person.

(12)  "Residential mortgage loan" means:

(a)  A federally related mortgage loan, which is entered into on a closed-end credit basis as defined by 12 CFR §226.2(a)(10).

(b)  A consumer loan secured by a mortgage on residential immovable property not specifically contracted for under the Louisiana Consumer Credit Law.  Consumer loans otherwise subject to the Residential Mortgage Lending Act may be made contractually subject to the Louisiana Consumer Credit Law by specifically stating that the loan is subject to the Louisiana Consumer Credit Law.

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.