Dear Credit Union Mortgage Lenders:
The definition of “Mortgage Loan Originator” in the attached sample SAFE Act Policies and Procedures has been revised to follow the federal SAFE Act definition (rather than the Texas SAFE act definition). Under the federal definition, the MLO is an employee who takes a residential application and offers or negotiates terms. Under the Texas SAFE Act, an MLO is one who takes a residential application or offers or negotiates terms.
“An MLO is a _________ employee who: takes a residential mortgage loan application, and offers or negotiates terms of a residential mortgage loan for compensation or gain.”
If you have any questions or concerns about the SAFE Act, do not hesitate to call my office.
Morton Baird | Law Offices of Morton W. Baird II | mbaird@bairdlaw.com |210 828 5844
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