45-702 Terms, defined. - Nebraska Statutes

45-702. Terms, defined.For purposes of the Residential Mortgage Licensing Act:(1) Borrower means the mortgagor or mortgagors under a real estate mortgageor the trustor or trustors under a trust deed;(2) Branch office means any location at which the business of a mortgagebanker or mortgage loan originator is to be conducted, including (a) any officesphysically located in Nebraska, (b) any offices that, while not physicallylocated in this state, intend to transact business with Nebraska residents,and (c) any third-party or home-based locations that mortgage loan originators,agents, and representatives intend to use to transact business with Nebraskaresidents;(3) Breach of security of the system means unauthorized acquisitionof data that compromises the security, confidentiality, or integrity of theinformation maintained by the Nationwide Mortgage Licensing System and Registry,its affiliates, or its subsidiaries;(4) Clerical or support duties means tasks which occur subsequent tothe receipt of a residential mortgage loan application including (a) the receipt,collection, distribution, and analysis of information common for the processingor underwriting of a residential mortgage loan or (b) communication with aconsumer to obtain the information necessary for the processing or underwritingof a residential mortgage loan, to the extent that such communication doesnot include offering or negotiating loan rates or terms or counseling consumersabout residential mortgage loan rates or terms;(5) Control means the power, directly or indirectly, to direct the managementor policies of a mortgage banking business, whether through ownership of securities,by contract, or otherwise. Any person who (a) is a director, a general partner,or an executive officer, including the president, chief executive officer,chief financial officer, chief operating officer, chief legal officer, chiefcompliance officer, and any individual with similar status and function, (b)directly or indirectly has the right to vote ten percent or more of a classof voting security or has the power to sell or direct the sale of ten percentor more of a class of voting securities, (c) in the case of a limited liabilitycompany, is a managing member, or (d) in the case of a partnership, has theright to receive, upon dissolution, or has contributed, ten percent or moreof the capital, is presumed to control that mortgage banking business;(6) Department means the Department of Banking and Finance;(7) Depository institution means any person (a) organized or charteredunder the laws of this state, any other state, or the United States relatingto banks, savings institutions, trust companies, savings and loan associations,credit unions, or industrial banks or similar depository institutions whichthe Board of Directors of the Federal Deposit Insurance Corporation findsto be operating substantially in the same manner as an industrial bank and(b) engaged in the business of receiving deposits other than funds held ina fiduciary capacity, including, but not limited to, funds held as trustee,executor, administrator, guardian, or agent;(8) Director means the Director of Banking and Finance;(9) Dwelling means a residential structure located or intended to belocated in this state that contains one to four units, whether or not thatstructure is attached to real property, including an individual condominiumunit, cooperative unit, mobile home, or trailer, if it is used as a residence;(10) Federal banking agencies means the Board of Governors of the FederalReserve System, the Comptroller of the Currency, the Director of the Officeof Thrift Supervision, the National Credit Union Administration, and the FederalDeposit Insurance Corporation;(11) Immediate family member means a spouse, child, sibling, parent,grandparent, or grandchild, including stepparents, stepchildren, stepsiblings,and adoptive relationships;(12) Installment loan company means any person licensed pursuant tothe Nebraska Installment Loan Act;(13) Licensee means any person licensed under the Residential MortgageLicensing Act as either a mortgage banker or mortgage loan originator;(14) Loan processor or underwriter means an individual who (a) performsclerical or support duties as an employee at the direction of and subjectto the supervision and instruction of a person licensed, or exempt from licensing,under the Residential Mortgage Licensing Act or Nebraska Installment LoanAct and (b) does not represent to the public, through advertising or othermeans of communicating or providing information including the use of businesscards, stationery, brochures, signs, rate lists, or other promotional items,that such individual can or will perform any of the activities of a mortgageloan originator;(15) Mortgage banker or mortgage banking business means any person (a)other than (i) a person exempt under section 45-703, (ii) an individual whois a loan processor or underwriter, or (iii) an individual who is licensedin this state as a mortgage loan originator and (b) who, for compensationor gain or in the expectation of compensation or gain, directly or indirectlymakes, originates, services, negotiates, acquires, sells, arranges for, oroffers to make, originate, service, negotiate, acquire, sell, or arrange fora residential mortgage loan;(16)(a) Mortgage loan originator means an individual who for compensationor gain or in the expectation of compensation or gain (i) takes a residentialmortgage loan application or (ii) offers or negotiates terms of a residentialmortgage loan.(b) Mortgage loan originator does not include (i) an individual engagedsolely as a loan processor or underwriter except as otherwise provided insection 45-727, (ii) a person or entity that only performs real estate brokerageactivities and is licensed or registered in accordance with Nebraska law,unless the person or entity is compensated by a lender, a mortgage broker,or other mortgage loan originator or by any agent of such lender, mortgagebroker, or other mortgage loan originator, and (iii) a person solely involvedin extensions of credit relating to time-share programs as defined in section 76-1702;(17) Nationwide Mortgage Licensing System and Registry means a mortgagelicensing system developed and maintained by the Conference of State BankSupervisors and the American Association of Residential Mortgage Regulatorsfor the licensing and registration of mortgage loan originators, mortgagebankers, and installment loan companies;(18) Nontraditional mortgage product means any residential mortgageloan product other than a thirty-year fixed rate residential mortgage loan;(19) Offer means every attempt to provide, offer to provide, or solicitationto provide a residential mortgage loan or any form of mortgage banking business.Offer includes, but is not limited to, all general and public advertising,whether made in print, through electronic media, or by the Internet;(20) Person means an association, joint venture, joint-stock company,partnership, limited partnership, limited liability company, business corporation,nonprofit corporation, individual, or any group of individuals however organized;(21) Real estate brokerage activity means any activity that involvesoffering or providing real estate brokerage services to the public, including(a) acting as a real estate salesperson or real estate broker for a buyer,seller, lessor, or lessee of real property, (b) bringing together partiesinterested in the sale, purchase, lease, rental, or exchange of real property,(c) negotiating, on behalf of any party, any portion of a contract relatingto the sale, purchase, lease, rental, or exchange of real property, otherthan in connection with providing financing with respect to any such transaction,(d) engaging in any activity for which a person engaged in the activity isrequired to be registered or licensed as a real estate salesperson or realestate broker under any applicable law, and (e) offering to engage in anyactivity or act in any capacity described in subdivision (a), (b), (c), or(d) of this subdivision;(22) Registered bank holding company means any bank holding companyregistered with the department pursuant to the Nebraska Bank Holding CompanyAct of 1995;(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) wholly owned and controlledby 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 NationwideMortgage Licensing System and Registry;(24) Registrant means a person registered pursuant to section 45-704;(25) Residential mortgage loan means any loan or extension of credit,including a refinancing of a contract of sale or an assumption or refinancingof a prior loan or extension of credit, which is primarily for personal, family,or household use and is secured by a mortgage, trust deed, or other equivalentconsensual security interest on a dwelling or residential real estate uponwhich is constructed or intended to be constructed a dwelling;(26) Residential real estate means any real property located in thisstate upon which is constructed or intended to be constructed a dwelling;(27) Reverse-mortgageloan means a loan made by a licensee which (a) is secured by residential realestate, (b) is nonrecourse to the borrower except in the event of fraud bythe borrower or waste to the residential real estate given as security forthe loan, (c) provides cash advances to the borrower based upon the equityin the borrower's owner-occupied principal residence, (d) requires no paymentof principal or interest until the entire loan becomes due and payable, and(e) otherwise complies with the terms of section 45-702.01;(28) Service means acceptingpayments or maintenance of escrow accounts in the regular course of businessin connection with a residential mortgage loan;(29) State means any stateof the United States, the District of Columbia, any territory of the UnitedStates, Puerto Rico, Guam, American Samoa, the Trust Territory of the PacificIslands, the Virgin Islands, or the Northern Mariana Islands; and(30) Unique identifier meansa number or other identifier assigned by protocols established by the NationwideMortgage Licensing System and Registry. SourceLaws 1989, LB 272, § 5; Laws 1993, LB 121, § 274; Laws 1993, LB 217, § 1; Laws 1995, LB 163, § 2; Laws 1995, LB 384, § 17; Laws 1999, LB 396, § 30; Laws 2003, LB 131, § 29; Laws 2003, LB 218, § 1; Laws 2006, LB 876, § 28; Laws 2007, LB124, § 41; Laws 2008, LB851, § 19; Laws 2009, LB328, § 4; Laws 2010, LB892, § 4. Cross ReferencesNebraska Bank Holding Company Act of 1995, see section 8-908.Nebraska Installment Loan Act, see section 45-1001.