RSA 397-A:4 · Exemptions

397-A:4 Exemptions. – The provisions of this chapter shall not apply to:

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I.

Depository institutions or an institution regulated by the Farm Credit Administration.

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II.

Registered mortgage loan originators, when acting for an entity described in paragraph I or for a subsidiary that is owned and controlled by an entity described in paragraph I.

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III.

Federal, state, or local governmental agencies, instrumentalities, and corporations and the employees of such entities who act as loan originators and mortgage servicers pursuant to their official duties as employees of the entities provided that with regard to those activities that would otherwise be within the scope of this chapter:

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(a)

Such government entity operates:

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(1)

To promote affordable housing, housing improvement assistance, or to provide homeownership education, or similar services.

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(2)

To conduct its activities in a manner that serves public or charitable purposes.

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(3)

To receive funding and revenues and to charge fees in a manner that does not incentivize the organization or its employees to act other than in the best interests of its clients.

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(4)

To compensate employees in a manner that does not incentivize employees to act other than in the best interests of its clients.

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(5)

Absent a commercial context and without a pecuniary interest.

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(b)

The government employees who act as loan originators and mortgage servicers as employees of government entities and pursuant to government funded and regulated housing assistance programs do so:

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(1)

For public or charitable purposes, and not for the profit of another individual or entity.

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(2)

Not within a commercial context.

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(c)

In addition, if a second mortgage loan is offered in conjunction with a first mortgage loan funded by a state entity exempt under this paragraph, but such second mortgage is negotiated, arranged, found, or procured through a licensed loan originator that is not employed by the exempt state entity, such second mortgage shall be exempt if:

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(1)

The second mortgage is offered consistent with the standards in subparagraph III(a); and

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(2)

The licensed loan originator is not compensated for the second mortgage in a manner that incentivizes the loan originator to act other than in the best interest of the consumer.

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IV.

(a) Exempt nonprofit entities, provided that such entity:

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(1)

Is authorized to conduct mortgage banker, mortgage broker, or mortgage servicer business in this state by an order of the commissioner or is authorized by New Hampshire statute to do mortgage lending;

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(2)

Files as an exempt entity on the Nationwide Multistate Licensing System and Registry;

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(3)

Conforms to the requirements of the Nationwide Multistate Licensing System and Registry including but not limited to the reporting requirements;

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(4)

Files and maintains a bond in accordance with RSA 397-A:5, III(c) to cover the business conducted by its originators;

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(5)

Licenses its originators in this state through the Nationwide Multistate Licensing System and Registry; and

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(6)

Cooperates with and provides access to records and documents required by the commissioner to carry out examinations of its licensed originators' activities in accordance with RSA 397-A:12. (b)(1) In this paragraph, "exempt nonprofit entities" means nonprofit agencies or persons which have a tax exempt status granted under the provisions of section 501(c)(3) or 501(c)(4) of the Internal Revenue Code; and

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(A)

Exclusively make or issue commitments for mortgage loans on residential property to be financed by a governmental entity with public funds, or negotiate, place, assist in placement of, find, or offer to negotiate, place, assist in placement of, or find mortgage loans on residential property to be financed with public funds exclusively under a contract with a governmental entity; or

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(B)

Make or issue commitments for mortgage loans on residential property and are determined by the commissioner to be organized exclusively for benevolent or charitable purposes for the benefit of New Hampshire consumers.

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(2)

For purposes of this definition, the making of a mortgage loan includes being named as the lender or mortgagee on the note, mortgage, or other loan documents.

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V.

An owner of real property who, in any consecutive 12-month period, makes no more than 3 mortgage loans to purchasers of the property for all or part of the purchase price of the real estate against which the mortgage is secured. The owner of real property in such transactions shall not be considered to be engaged in the business of mortgage loan origination. Source. 2016, 289:1, eff. Aug. 20, 2016. 2018, 196:14, eff. Aug. 7, 2018. 2019, 60:1, 2, eff. June 5, 2019.

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