23 CAR § 301-201. Soliciting, accepting, or offering to solicit or accept application for a mortgage loan

(a)(1) Under the definition of a loan officer, Arkansas Code § 23-39-502(11)(A)(i) and (ii), and under the definition of mortgage broker, Arkansas Code § 23-39-502(15)(A) and (B), a person may be considered to have solicited or accepted, or offered to solicit or accept, an application for a mortgage loan when the person: (A) Engages in certain activities; and (B) Receives direct or indirect compensation or gain from a mortgage broker or mortgage banker. (2) These activities include, but are not limited to the following: (A)(i) Materially assisting a borrower in completing, in whole or in part, an application for a mortgage loan, regardless of whether or not a mortgage loan is made. (ii) Materially assisting may include advising or counseling a borrower about the: (a) Manner in which an application should be completed to facilitate approval of the mortgage loan; or (b) Desirability or suitability of available mortgage loan programs. (iii) Materially assisting does not include communication of generic information related to the application process, such as: (a) The type of information necessary to complete an application form; or (b) A general description of the loan application process; (B) Recommending, referring, or steering a borrower to a specific lender based upon a duty to or incentive from the lender; (C) Holding oneself out as being a mortgage broker, or loan officer, or having knowledge or expertise in mortgage lending through advertising or promotional materials such as: (i) Business cards; (ii) Stationery; (iii) Brochures; (iv) Rate sheets; or (v) Other promotional items; (D) Holding oneself out as having knowledge or expertise in mortgage loans or mortgage loan modifications; and (E) Referring a consumer to a loan officer or mortgage broker. (b) A person will not be considered to have solicited or accepted or to have offered to solicit or accept an application for a mortgage loan, when the person receives no direct or indirect compensation or gain from a mortgage broker or mortgage banker and the person’s activities are limited to the following: (1) Informing a borrower that lenders are available to assist in a mortgage loan transaction; (2) Making lender application materials available to a borrower; (3) Informing a borrower that a lender has approved or denied the borrower’s application; and (4) Physically handling completed documents, transmitting completed documents, or delivering completed documents or correspondence to a lender on behalf of a borrower.