The Department of Financial Institutions (DFI) licenses and regulates mortgage loan originators. A mortgage loan originator is a person who takes residential mortgage loan applications, offers or negotiates the terms of residential mortgage loans, or performs residential loan modification services. A mortgage loan originator must originate loans from a licensed location, and originating a mortgage loan from an unlicensed residence is a violation of the Consumer Loan Act.
Mortgage loan originators may originate loans from their unlicensed residences as long as they comply with all state and federal information security requirements and any other requirements established by rule.
(In support) This bill makes permanent the temporary authorization for mortgage loan originators to work from home. The DFI had been looking at this change, and the pandemic expedited the process. The DFI will ensure appropriate security requirements are established during rulemaking. The rules will be consistent with the guidance issued at the beginning of the pandemic, which prohibits mortgage loan originators from seeing clients in their home, requires any paper documents to remain at the licensed location, and specifies that all work must be handled on secure computer systems.