source:
  type: regulation
  id: safe-12cfr-1008.103
  authority: 12 CFR §1008.103 — Individuals required to be licensed by states (SAFE Act state-licensing
    side)
  description: 'Federal minimum standard for state MLO licensing under the SAFE Act

    (Regulation H), including the definition of "engaging in the business

    of a loan originator," "takes a residential mortgage loan application,"

    and "offers or negotiates terms," plus the independent-contractor

    processor/underwriter rule.

    '
obligations:
- id: safe-12cfr-1008.103-a
  canonical_id: safe-12cfr-1008.103-a
  section: 12 CFR §1008.103(a)
  description: '(a): (a) Except as provided in paragraph (e) of this section, in order to operate a S.A.F.E.-compliant
    program, a state must prohibit an individual from engaging in the business of a loan originator with
    respect to any dwelling or residential real estate in the state , unless the individual first: (1)
    Re…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1008.103(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1008.103
    snapshot_id: 3725b83d3c5c037a
    fetched_at: '2026-05-22T18:52:44Z'
    content_hash: sha256:b274eda5576bf9287bae1345f1b4dc173d23675515646e4d7430300499fb88f6
    paragraph_quote: '(a) Except as provided in paragraph (e) of this section, in order to operate a S.A.F.E.-compliant
      program, a state must prohibit an individual from engaging in the business of a loan originator
      with respect to any dwelling or residential real estate in the state , unless the individual first:
      (1) Registers as a loan originator through and obtains a unique identifier from the NMLSR, and (2)
      Obtains and maintains a valid loan originator license from the state .'
    drafter_attestation: Verbatim subsection of 12 CFR §1008.103 from Cornell LII snapshot 3725b83d3c5c037a;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: safe-12cfr-1008.103-b
  canonical_id: safe-12cfr-1008.103-b
  section: 12 CFR §1008.103(b)
  description: '(b): (b) An individual engages in the business of a loan originator if the individual
    , in a commercial context and habitually or repeatedly: (1)'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1008.103(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1008.103
    snapshot_id: 3725b83d3c5c037a
    fetched_at: '2026-05-22T18:52:44Z'
    content_hash: sha256:b274eda5576bf9287bae1345f1b4dc173d23675515646e4d7430300499fb88f6
    paragraph_quote: '(b) An individual engages in the business of a loan originator if the individual
      , in a commercial context and habitually or repeatedly: (1)'
    drafter_attestation: Verbatim subsection of 12 CFR §1008.103 from Cornell LII snapshot 3725b83d3c5c037a;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: safe-12cfr-1008.103-i
  canonical_id: safe-12cfr-1008.103-i
  section: 12 CFR §1008.103(i)
  description: '(i): (i) Takes a residential mortgage loan application ; and (ii) Offers or negotiates
    terms of a residential mortgage loan for compensation or gain ; or (2) Represents to the public, through
    advertising or other means of communicating or providing information (including the use of business
    cards, statio…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1008.103(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1008.103
    snapshot_id: 3725b83d3c5c037a
    fetched_at: '2026-05-22T18:52:44Z'
    content_hash: sha256:b274eda5576bf9287bae1345f1b4dc173d23675515646e4d7430300499fb88f6
    paragraph_quote: (i) Takes a residential mortgage loan application ; and (ii) Offers or negotiates
      terms of a residential mortgage loan for compensation or gain ; or (2) Represents to the public,
      through advertising or other means of communicating or providing information (including the use
      of business cards, stationery, brochures, signs, rate lists, or other promotional items), that such
      individual can or will perform the activities described in paragraph (b)(1) of this section.
    drafter_attestation: Verbatim subsection of 12 CFR §1008.103 from Cornell LII snapshot 3725b83d3c5c037a;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: safe-12cfr-1008.103-c
  canonical_id: safe-12cfr-1008.103-c
  section: 12 CFR §1008.103(c)
  description: '(c): (c) (1) An individual “takes a residential mortgage loan application” if the individual
    receives a residential mortgage loan application for the purpose of facilitating a decision whether
    to extend an offer of residential mortgage loan terms to a borrower or prospective borrower (or to
    accept the te…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1008.103(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1008.103
    snapshot_id: 3725b83d3c5c037a
    fetched_at: '2026-05-22T18:52:44Z'
    content_hash: sha256:b274eda5576bf9287bae1345f1b4dc173d23675515646e4d7430300499fb88f6
    paragraph_quote: '(c) (1) An individual “takes a residential mortgage loan application” if the individual
      receives a residential mortgage loan application for the purpose of facilitating a decision whether
      to extend an offer of residential mortgage loan terms to a borrower or prospective borrower (or
      to accept the terms offered by a borrower or prospective borrower in response to a solicitation),
      whether the application is received directly or indirectly from the borrower or prospective borrower.
      (2) An individual “offers or negotiates terms of a residential mortgage loan for compensation or
      gain” if the individual:'
    drafter_attestation: Verbatim subsection of 12 CFR §1008.103 from Cornell LII snapshot 3725b83d3c5c037a;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: safe-12cfr-1008.103-i
  canonical_id: safe-12cfr-1008.103-i
  section: 12 CFR §1008.103(i)
  description: '(i): (i) (A) Presents for consideration by a borrower or prospective borrower particular
    residential mortgage loan terms; (B) Communicates directly or indirectly with a borrower, or prospective
    borrower for the purpose of reaching a mutual understanding about prospective residential mortgage
    loan terms; …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1008.103(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1008.103
    snapshot_id: 3725b83d3c5c037a
    fetched_at: '2026-05-22T18:52:44Z'
    content_hash: sha256:b274eda5576bf9287bae1345f1b4dc173d23675515646e4d7430300499fb88f6
    paragraph_quote: (i) (A) Presents for consideration by a borrower or prospective borrower particular
      residential mortgage loan terms; (B) Communicates directly or indirectly with a borrower, or prospective
      borrower for the purpose of reaching a mutual understanding about prospective residential mortgage
      loan terms; or (C) Recommends, refers, or steers a borrower or prospective borrower to a particular
      lender or set of residential mortgage loan terms, in accordance with a duty to or incentive from
      any person other than the borrower or prospective borrower; and (ii) Receives or expects to receive
      payment of money or anything of value in connection with the activities described in paragraph (c)(2)(i)
      of this section or as a result of any residential mortgage loan terms entered into as a result of
      such activities.
    drafter_attestation: Verbatim subsection of 12 CFR §1008.103 from Cornell LII snapshot 3725b83d3c5c037a;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: safe-12cfr-1008.103-d
  canonical_id: safe-12cfr-1008.103-d
  section: 12 CFR §1008.103(d)
  description: '(d): (d) (1) Except as provided in paragraph (e) of this section, a state must prohibit
    an individual who is an independent contractor from engaging in residential mortgage loan origination
    activities as a loan processor or underwriter with respect to any dwelling or residential real estate
    in the state …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1008.103(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1008.103
    snapshot_id: 3725b83d3c5c037a
    fetched_at: '2026-05-22T18:52:44Z'
    content_hash: sha256:b274eda5576bf9287bae1345f1b4dc173d23675515646e4d7430300499fb88f6
    paragraph_quote: '(d) (1) Except as provided in paragraph (e) of this section, a state must prohibit
      an individual who is an independent contractor from engaging in residential mortgage loan origination
      activities as a loan processor or underwriter with respect to any dwelling or residential real estate
      in the state , unless the individual first:'
    drafter_attestation: Verbatim subsection of 12 CFR §1008.103 from Cornell LII snapshot 3725b83d3c5c037a;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: safe-12cfr-1008.103-i
  canonical_id: safe-12cfr-1008.103-i
  section: 12 CFR §1008.103(i)
  description: '(i): (i) Registers as a loan originator through and obtains a unique identifier from the
    NMLSR, and (ii) Obtains and maintains a valid loan originator license from the state . (2) An individual
    “engage[s] in residential mortgage loan origination activities as a loan processor or underwriter”
    if, with res…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1008.103(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1008.103
    snapshot_id: 3725b83d3c5c037a
    fetched_at: '2026-05-22T18:52:44Z'
    content_hash: sha256:b274eda5576bf9287bae1345f1b4dc173d23675515646e4d7430300499fb88f6
    paragraph_quote: (i) Registers as a loan originator through and obtains a unique identifier from the
      NMLSR, and (ii) Obtains and maintains a valid loan originator license from the state . (2) An individual
      “engage[s] in residential mortgage loan origination activities as a loan processor or underwriter”
      if, with respect to a residential mortgage loan application , the individual performs clerical or
      support duties.
    drafter_attestation: Verbatim subsection of 12 CFR §1008.103 from Cornell LII snapshot 3725b83d3c5c037a;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: safe-12cfr-1008.103-e
  canonical_id: safe-12cfr-1008.103-e
  section: 12 CFR §1008.103(e)
  description: '(e): (e) A state is not required to impose the prohibitions required under paragraphs
    (a) and (d) of this section on the following individuals: (1) An individual who performs only real
    estate brokerage activities and is licensed or registered in accordance with applicable state law,
    unless the individual…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1008.103(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1008.103
    snapshot_id: 3725b83d3c5c037a
    fetched_at: '2026-05-22T18:52:44Z'
    content_hash: sha256:b274eda5576bf9287bae1345f1b4dc173d23675515646e4d7430300499fb88f6
    paragraph_quote: '(e) A state is not required to impose the prohibitions required under paragraphs
      (a) and (d) of this section on the following individuals: (1) An individual who performs only real
      estate brokerage activities and is licensed or registered in accordance with applicable state law,
      unless the individual is compensated directly or indirectly by a lender, mortgage broker, or other
      loan originator or by an agent of such lender, mortgage broker, or other loan originator ; (2) An
      individual who is involved only in extensions of credit relating to timeshare plans, as that term
      is defined in 11 U.S.C. 101(53D) ; (3) An individual who performs only clerical or support duties
      and:'
    drafter_attestation: Verbatim subsection of 12 CFR §1008.103 from Cornell LII snapshot 3725b83d3c5c037a;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: safe-12cfr-1008.103-i
  canonical_id: safe-12cfr-1008.103-i
  section: 12 CFR §1008.103(i)
  description: '(i): (i) Who does so at the direction of and subject to the supervision and instruction
    of an individual who: (A) Is licensed and registered in accordance with paragraph (a) of this section,
    or (B) Is not required to be licensed in accordance with paragraph (e)(5); or (ii) Who performs such
    duties solely…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1008.103(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1008.103
    snapshot_id: 3725b83d3c5c037a
    fetched_at: '2026-05-22T18:52:44Z'
    content_hash: sha256:b274eda5576bf9287bae1345f1b4dc173d23675515646e4d7430300499fb88f6
    paragraph_quote: '(i) Who does so at the direction of and subject to the supervision and instruction
      of an individual who: (A) Is licensed and registered in accordance with paragraph (a) of this section,
      or (B) Is not required to be licensed in accordance with paragraph (e)(5); or (ii) Who performs
      such duties solely with respect to transactions for which the individual who acts as a loan originator
      is not required to be licensed, in accordance with paragraph (e)(2), (6), or (7) of this section;
      (4) An individual who performs only purely administrative or clerical tasks on behalf of a loan
      originator ; (5) An individual who is lawfully registered with, and maintains a unique identifier
      through, the Nationwide Mortgage Licensing System and Registry, and who is an employee of a covered
      financial institution , as that term is defined in 12 CFR part 1007 . (6)'
    drafter_attestation: Verbatim subsection of 12 CFR §1008.103 from Cornell LII snapshot 3725b83d3c5c037a;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: safe-12cfr-1008.103-i
  canonical_id: safe-12cfr-1008.103-i
  section: 12 CFR §1008.103(i)
  description: '(i): (i) An individual who is an employee of a Federal, state , or local government agency
    or housing finance agency and who acts as a loan originator only pursuant to his or her official duties
    as an employee of the Federal, state , or local government agency or housing finance agency . (ii)
    For purpose…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1008.103(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1008.103
    snapshot_id: 3725b83d3c5c037a
    fetched_at: '2026-05-22T18:52:44Z'
    content_hash: sha256:b274eda5576bf9287bae1345f1b4dc173d23675515646e4d7430300499fb88f6
    paragraph_quote: '(i) An individual who is an employee of a Federal, state , or local government agency
      or housing finance agency and who acts as a loan originator only pursuant to his or her official
      duties as an employee of the Federal, state , or local government agency or housing finance agency
      . (ii) For purposes of this paragraph (e)(6), the term employee has the meaning provided in paragraph
      (1) of the definition of employee in § 1008.23 and excludes the meaning provided in paragraph (2)
      of the definition. (iii) For purposes of this paragraph (e)(6), the term housing finance agency
      means any authority: (A) That is chartered by a state to help meet the affordable housing needs
      of the residents of the state ; (B) That is supervised directly or indirectly by the state government;
      (C) That is subject to audit and review by the state in which it operates; and (D) Whose activities
      make it eligible to be a member of the National Council of State Housing Agencies. (7)'
    drafter_attestation: Verbatim subsection of 12 CFR §1008.103 from Cornell LII snapshot 3725b83d3c5c037a;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: safe-12cfr-1008.103-i
  canonical_id: safe-12cfr-1008.103-i
  section: 12 CFR §1008.103(i)
  description: '(i): (i) An employee of a bona fide nonprofit organization who acts as a loan originator
    only with respect to his or her work duties to the bona fide nonprofit organization, and who acts
    as a loan originator only with respect to residential mortgage loans with terms that are favorable
    to the borrower. (i…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1008.103(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1008.103
    snapshot_id: 3725b83d3c5c037a
    fetched_at: '2026-05-22T18:52:44Z'
    content_hash: sha256:b274eda5576bf9287bae1345f1b4dc173d23675515646e4d7430300499fb88f6
    paragraph_quote: '(i) An employee of a bona fide nonprofit organization who acts as a loan originator
      only with respect to his or her work duties to the bona fide nonprofit organization, and who acts
      as a loan originator only with respect to residential mortgage loans with terms that are favorable
      to the borrower. (ii) For an organization to be considered a bona fide nonprofit organization under
      this paragraph, a state supervisory authority that opts not to require licensing of the employee
      must determine, under criteria and pursuant to processes established by the state , that the organization:
      (A) Has the status of a tax-exempt organization under section 501(c)(3) of the Internal Revenue
      Code of 1986 ; (B) Promotes affordable housing or provides homeownership education, or similar services;
      (C) Conducts its activities in a manner that serves public or charitable purposes, rather than commercial
      purposes; (D) Receives funding and revenue and charges fees in a manner that does not incentivize
      it or its employees to act other than in the best interests of its clients; (E) Compensates its
      employees in a manner that does not incentivize employees to act other than in the best interests
      of its clients; (F) Provides or identifies for the borrower residential mortgage loans with terms
      favorable to the borrower and comparable to mortgage loans and housing assistance provided under
      government housing assistance programs; and (G) Meets other standards that the state determines
      are appropriate. (iii) A state must periodically examine the books and activities of an organization
      it determines is a bona fide nonprofit organization and revoke its status as a bona fide nonprofit
      organization if it does not continue to meet the criteria under paragraph (e)(7)(ii) of this section;
      (iv) For residential mortgage loans to have terms that are favorable to the borrower, a state must
      determine that the terms are consistent with loan origination in a public or charitable context,
      rather than a commercial context.'
    drafter_attestation: Verbatim subsection of 12 CFR §1008.103 from Cornell LII snapshot 3725b83d3c5c037a;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: safe-12cfr-1008.103-f
  canonical_id: safe-12cfr-1008.103-f
  section: 12 CFR §1008.103(f)
  description: '(f): (f) A state must require an individual licensed in accordance with paragraphs (a)
    or (d) of this section to renew the loan originator license no less often than annually. Internal
    Revenue Code of 1986 CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel Table
    of Authorities Acc…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1008.103(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1008.103
    snapshot_id: 3725b83d3c5c037a
    fetched_at: '2026-05-22T18:52:44Z'
    content_hash: sha256:b274eda5576bf9287bae1345f1b4dc173d23675515646e4d7430300499fb88f6
    paragraph_quote: (f) A state must require an individual licensed in accordance with paragraphs (a)
      or (d) of this section to renew the loan originator license no less often than annually. Internal
      Revenue Code of 1986 CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel
      Table of Authorities Accessibility About LII Contact us Advertise here Help Terms of use Privacy
    drafter_attestation: Verbatim subsection of 12 CFR §1008.103 from Cornell LII snapshot 3725b83d3c5c037a;
      body isolated between nav and notes; substring-verified.
  judgment: false
