A processor works for 3 Texas lenders as an independent contractor and never speaks to a borrower about terms. Does independent-contractor processing require an originator license even without discussing loan terms?
Correct Answer
A) A residential mortgage originator license is still required here
A loan processor or underwriter who is an independent contractor may not engage in those activities unless the contractor obtains and maintains a residential mortgage loan originator license and complies with Chapter 180. Other choices: the work being clerical is what makes this the one place a non-originator is licensed; the number of lenders served is not a threshold; and no file count triggers the requirement. Source: Tex. Fin. Code sec. 180.051(b)
Why This Is the Correct Answer
A loan processor or underwriter who is an independent contractor may not engage in those activities unless the contractor obtains and maintains a residential mortgage loan originator license and complies with Chapter 180. Other choices: the work being clerical is what makes this the one place a non-originator is licensed; the number of lenders served is not a threshold; and no file count triggers the requirement. Source: Tex. Fin. Code sec. 180.051(b)
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