A. This article does not apply to:
1. A person who does business under any other law of this state, or law of any other state while regulated by a state agency of such other state or the United States, relating to banks, savings banks, trust companies, savings and loan associations, profit sharing and pension trusts, credit unions, insurance companies or consumer lenders, or receivership, including directly or indirectly making, negotiating or offering to make or negotiate a mortgage loan if the mortgage transactions are regulated by the other law or are under the jurisdiction of a court. Subsidiaries and service corporations of these institutions shall not be exempt and shall be subject to the provisions of this article unless preempted by federal law.
2. A person who makes a mortgage loan:
(a) With his own monies.
(b) For his own investment.
(c) Without intent to resell.
(d) And is not engaged in the business of making mortgage loans.
3. A person who funds a mortgage loan which has been originated and processed by a licensee, by a mortgage banker licensed in this state or by a person exempt under paragraph 1 of this subsection and who meets all of the following:
(a) Does not maintain a place of business in this state in connection with funding mortgage loans.
(b) Does not directly or indirectly solicit borrowers in this state for the purpose of making mortgage loans.
(c) Does not participate in the negotiation of mortgage loans.
4. A person who, as seller of real property, receives one or more mortgages or deeds of trust as security for a purchase money obligation.
5. A person who is licensed to practice law in this state, but is not actively and principally engaged in the business of negotiating mortgage loans, if this person renders services in the course of his practice as an attorney at law.
6. A person who receives a mortgage or deed of trust on real property as security for an obligation payable on an installment or deferred payment basis and arising out of materials furnished or services rendered in the improvement of that real property or any lien created without the consent of the owner of the real property.
7. A person who is licensed pursuant to article 2 or 3 of this chapter.
8. An agency of any state or of the United States.
9. A nonprofit federally tax exempt corporation certified by the United States small business administration and organized to promote economic development within this state whose primary activity consists of providing financing for business expansion.
10. An institutional investor as defined in section 6-971 unless the institutional investor makes a mortgage loan other than a commercial mortgage loan as defined in section 6-971.
B. For the purposes of:
1. Subsection A, paragraph 3 of this section, " originate" includes loans closed in a name other than that of the licensee, a mortgage banker licensed in this state or exempt person only if the person in whose name the loan is closed meets the other requirements of subsection A, paragraph 3 of this section.
2. Subsection A, paragraph 3, subdivision (c) of this section, " negotiation of mortgage loans" does not include setting the terms under which a person may buy a mortgage loan originated by a licensee or a person exempt under subsection A, paragraph 1 of this section.Section: Previous 6-871 6-872 6-873 6-874 6-881 6-882 6-901 6-902 6-903 6-904 6-905 6-906 6-907 6-908 6-909 Next
Last modified: October 13, 2016