TITLE 26

BANKS AND BANKING

CHAPTER 31

IDAHO RESIDENTIAL MORTGAGE PRACTICES ACT

PART 3.

PROVISIONS APPLICABLE TO MORTGAGE LOAN ORIGINATORS

26-31-304.  LICENSE AND REGISTRATION REQUIRED — EXEMPTIONS. (1) Unless specifically exempt under subsection (2) of this section, an individual shall not engage in the business of a mortgage loan originator with respect to any dwelling located in this state without first obtaining and maintaining annually a license under this part. Each licensed mortgage loan originator shall register with and maintain a valid unique identifier issued by the NMLSR.

(2)  The following are exempt from this part:

(a)  Registered mortgage loan originators when acting on behalf of an entity described in section 26-31-303(9)(a) through (c), Idaho Code;

(b)  Any individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual;

(c)  Any individual who offers or negotiates terms of a residential mortgage loan that is secured by a dwelling that serves as the individual’s residence; and

(d)  An attorney duly authorized to practice in this state who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney’s representation of the client, unless the attorney 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.

(3)  A loan processor or underwriter who is an independent contractor may not engage in the activities of a loan processor or underwriter unless such independent contractor loan processor or underwriter obtains and maintains a license under subsection (1) of this section. Each independent contractor loan processor or underwriter licensed as a mortgage loan originator must have and maintain a valid unique identifier issued by the nationwide mortgage licensing system and registry.

(4)  For the purpose of implementing an orderly and efficient application and licensing process, the director may establish licensing rules and interim procedures for licensing and acceptance of applications. For previously registered or licensed individuals, the director may establish expedited review and licensing procedures.

(5)  An individual subject to the licensing requirements of this part may obtain temporary authority to originate loans in this state under the conditions of paragraphs (a), (b), and (c) of this subsection.

(a)  Upon becoming employed by a mortgage broker or lender that is licensed pursuant to this chapter, an individual who is a registered loan originator shall be deemed to have temporary authority to act as a loan originator in this state for the period described in paragraph (c) of this subsection if the individual:

(i)   Has not had an application for a loan originator license denied, revoked, or suspended in any governmental jurisdiction;

(ii)  Has not been subject to or served with a cease and desist order in any governmental jurisdiction nor subject to an action pursuant to 12 U.S.C. 5113(c);

(iii) Has not been convicted of a misdemeanor or felony that would preclude licensure under the laws of this state;

(iv)  Has submitted an application for a loan originator license under this part; and

(v)   Was registered in the NMLSR as a loan originator during the one (1) year period preceding the date on which the information required under this part is submitted.

(b)  A loan originator shall be deemed to have temporary authority to act as a loan originator in this state for the period described in paragraph (c) of this subsection if the individual:

(i)   Meets the requirements of subparagraphs (i), (ii), (iii), and (iv) of paragraph (a) of this subsection;

(ii)  Is employed by a mortgage broker or lender that is licensed pursuant to this act;

(iii) Was licensed as a mortgage loan originator in a state other than this state during the thirty (30) day period preceding the date on which the information required under this part was submitted in connection with an application for a mortgage loan originator license.

(c)  The period described in this paragraph shall begin on the date on which a loan originator submits the information required under this part in connection with the application for a mortgage loan originator license and end on the earliest of the date:

(i)   On which the loan originator withdraws the application for a mortgage loan originator license submitted pursuant to this part;

(ii)  On which the director denies, or issues a notice of intent to deny, the application;

(iii) On which the director grants a mortgage loan originator license; or

(iv)  That is one hundred twenty (120) days after the date on which the loan originator submits an application, if the application is listed on the NMLSR as incomplete.

(d)  Any person employing an individual who, pursuant to the provisions of this subsection, is deemed to have temporary authority to act as a loan originator in this state shall be subject to the requirements of this chapter and to applicable law to the same extent as if that individual was a loan originator licensed by this state.

(e)  An individual who, pursuant to the provisions of this subsection, is deemed to have temporary authority to act as a loan originator in this state and who engages in residential mortgage loan origination activities shall be subject to the requirements of this chapter and to applicable law to the same extent as if that individual was a loan originator licensed by this state.

History:

[26-31-304, added 2009, ch. 97, sec. 2, p. 298; am. 2013, ch. 64, sec. 14, p. 154; am. 2020, ch. 100, sec. 12, p. 269.]