Connecticut has provided clarification of loan processor and underwriter licensing. Under a recent amendment, employees of third-party loan processors and underwriters are not exempt, even if employed by a licensed lender or broker, and must obtain a Loan Processor/Underwriter License. The requirements for these individuals are similar to those for mortgage loan originators. Entities seeking to license their loan processor or underwriter employees are now required to submit an Exempt Company Registration to sponsor their employees on the NMLS. This amendment took effect on October 1, 2012.
Connecticut has added exemptions from mortgage licensure obligations for certain individuals. Additionally, bona fide nonprofit organizations will be exempt from mortgage broker licensing requirements to the extent that the bona fide nonprofit acts as a mortgage broker for residential mortgage loans that are exclusively made by corporations (or their affiliates) who make those loans exclusively for the their employees' benefit or to promote home ownership in urban areas. These exemptions were effective October 1, 2012.
Connecticut also has added a new obligation for Qualified Individuals and Branch Managers of licensed mortgage lenders, mortgage correspondent lenders, and mortgage brokers. Effective November 1, 2012, each Qualified Individual and Branch Manager must be licensed as a mortgage loan originator.