Under the SAFE Act Final Rule, a mortgage loan originator license is not required to originate certain non-seller financing* transactions. Which transactions are included in this exemption?

The SAFE Act Final Rule states that a mortgage loan originator license is not required for the following non-seller financing transactions:

• An employee of a government agency who engages in the business of a mortgage loan originator pursuant to his or her official duties as an employee of that government agency (e.g., Michigan State Housing Development Authority);
• An employee of a bona-fide nonprofit organization (see definition below) who engages in the business of a mortgage loan originator pursuant to his or her duties as an employee of that organization; or
• An individual volunteering his or her time to a bona-fide nonprofit organization (see definition below) who engages in the business of mortgage loan origination under the supervision and direction of management of that organization.

DIFS has taken the position that origination of the above-mentioned transactions generally does not require licensure under the MLOLA, in accordance with the SAFE Act Final Rule.

* “Seller financing” is defined later in this document.