2010 Tennessee Code
Title 45 - Banks And Financial Institutions
Chapter 13 - Tennessee Residential Lending, Brokerage and Servicing Act
Part 1 - General Provisions
45-13-105 - Chapter definitions.

45-13-105. Chapter definitions.

As used in this chapter, unless the context otherwise requires:

     (1)  “Branch manager” means the individual whose principal office is physically located in, who is in charge of and who is responsible for the business operations of a branch office of a mortgage lender or mortgage loan broker licensed under this chapter;

     (2)  “Branch office” means an office of a licensed mortgage lender or mortgage loan broker that is separate and distinct from the licensee's principal place of business;

     (3)  “Commissioner” means the commissioner of financial institutions or the commissioner's designated representative;

     (4)  “Control” means possession, direct or indirect, of the power to direct or cause the direction of management and policies of a person, whether through the ownership of voting securities by contract or otherwise; provided, that no individual shall be deemed to control a person solely on account of being a director, officer or employee of the person. For purposes of this section, a person who, directly or indirectly, owns, controls, holds the power to vote, or holds proxies representing twenty-five percent (25%) or more of the then outstanding voting securities issued by another person is presumed to control the other person. For purposes of this section, the commissioner may determine whether a person, in fact, controls another person;

     (5)  “Depository institution” has the same meaning as in § 3 of the Federal Deposit Insurance Act, codified in 12 U.S.C. § 1813, and includes any credit union;

     (6)  “Federal banking agencies” means the board of governors of the federal reserve system, the comptroller of the currency, the director of the office of thrift supervision, the national credit union administration and the federal deposit insurance corporation;

     (7)  “Immediate family member” means a spouse, child, sibling, parent, grandparent or grandchild. This includes stepparents, stepchildren, stepsiblings and adoptive relationships;

     (8)  “Individual” means a natural person;

     (9)  “License” means a license issued to a mortgage lender, mortgage loan broker, mortgage loan servicer or mortgage loan originator under this chapter, as applicable;

     (10)  “Licensee” means a person to whom a license has been issued under this chapter, whether a mortgage lender, mortgage loan broker, mortgage loan servicer or mortgage loan originator, as applicable, but “licensee” also applies to any person holding a certificate of registration on July 31, 2009, for so long as the certificate is still valid;

     (11)  (A)  In general, “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 a person licensed or exempt from licensing under § 45-13-201.

          (B)  For purposes of subdivision (11)(A), “clerical or support duties” includes, 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; and/or

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

     (12)  “Loss mitigation specialist” means an individual employed by a mortgage lender or mortgage loan servicer licensed under this chapter, or by a registrant authorized to make residential mortgage loans under the Industrial Loan and Thrift Companies Act, compiled in chapter 5 of this title, whose activities are confined to the negotiation of terms of an existing residential mortgage loan owned or being serviced by that licensee or registrant for purposes of modifying the terms of the loan, such as by reducing the interest rate or extending the term of the loan, when the modification is done for purposes of avoiding or curing default; provided, that “negotiates terms of an existing residential mortgage loan” as used in this subdivision (12) shall not include the negotiation of the refinancing of the loan;

     (13)  “Managing principal” means an individual who agrees to be primarily responsible for the operations of a licensed mortgage lender or mortgage loan broker;

     (14)  “Mortgage lender” means any person who makes a residential mortgage loan or holds the person out as able to make a residential mortgage loan;

     (15)  “Mortgage loan broker” means any person who for compensation or other gain, paid directly or indirectly, or in expectation of compensation or other gain, solicits, places, negotiates or originates a residential mortgage loan for another person or offers to solicit, place, negotiate or originate a residential mortgage loan for another person or who closes a residential mortgage loan that may be in the mortgage loan broker's own name with funds provided by another person and which loan is thereafter assigned to the person providing the funding of the loan, regardless of whether the acts are done directly or indirectly, through contact by telephone, by electronic means, by mail or in person with the borrower or borrowers or potential borrower or borrowers;

     (16)  (A)  In general, “mortgage loan originator”:

                (i)  Means an individual who for compensation or gain or in the expectation of compensation or gain:

                     (a)  Takes a residential mortgage loan application; or

                     (b)  Offers or negotiates terms of a residential mortgage loan;

                (ii)  Does not include an individual engaged solely as a loan processor or underwriter except as otherwise provided in § 45-13-301(d);

                (iii)  Does not include a person or entity that only performs real estate brokerage activities and is licensed or registered in accordance with Tennessee law, unless the person or entity is compensated by a mortgage lender, mortgage loan broker, or other mortgage loan originator or by any agent of the mortgage lender, mortgage loan broker or other mortgage loan originator; and

                (iv)  Does not include a person or entity solely involved in extensions of credit relating to timeshare plans, as defined in 11 U.S.C. § 101(53D).

          (B)  For purposes of subdivision (16)(A), “real estate brokerage activities” 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 the transaction;

                (iv)  Engaging in any activity for which a person 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 subdivision (16)(B)(i), (16)(B)(ii), (16)(B)(iii) or (16)(B)(iv);

     (17)  “Mortgage loan servicer” means any person who, in the regular course of business, assumes responsibility for servicing and accepting payments for a residential mortgage loan;

     (18)  “Mortgagor” means any person who grants a mortgage, deed of trust or other equivalent consensual security interest pursuant to a residential mortgage loan transaction;

     (19)  “Nationwide Mortgage Licensing System and Registry” means a mortgage licensing system 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;

     (20)  “Nontraditional mortgage product” means any mortgage product other than a thirty-year fixed rate residential mortgage loan;

     (21)  “Origination services” means the activities of a mortgage loan originator performed with regard to a residential mortgage loan;

     (22)  “Person” means an individual, sole proprietorship, corporation, limited liability company, partnership, trust, association or any other legal entity, however organized;

     (23)  “Registered mortgage loan originator” means any individual who:

          (A)  Meets the definition of mortgage loan originator and is an employee of:

                (i)  A depository institution;

                (ii)  A subsidiary that is:

                     (a)  Owned and controlled by a depository institution; and

                     (b)  Regulated by a federal banking agency; or

                (iii)  An institution regulated by the farm credit administration; and

          (B)  Is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry;

     (24)  “Registrant” has the same meaning as defined in § 45-5-102 of the Industrial Loan and Thrift Companies Act, compiled in chapter 5 of this title;

     (25)  “Residential mortgage loan” means any loan, including an extension of credit, primarily for personal, family or household use that is secured by a mortgage, deed of trust or other equivalent consensual security interest on a dwelling, as defined in § 103(v) of the federal Truth in Lending Act, codified in 15 U.S.C. § 1602(v), or residential real estate upon which is constructed or intended to be constructed a dwelling, as so defined;

     (26)  “Residential real estate” means any real property located in this state, upon which is constructed or intended to be constructed a dwelling; and

     (27)  “Unique identifier” means a number or other identifier assigned by protocols established by the Nationwide Mortgage Licensing System and Registry.

[Acts 2009, ch. 499, § 8.]