23 CAR § 301-202. Negotiating or offering to negotiate the terms and conditions of mortgage loan

(a)(1) Under the definition of a loan officer, Arkansas Code § 23-39-502(11)(A)(iii), and the definition of a mortgage broker, Arkansas Code § 23-39-502(15)(C), a person may be considered to have negotiated or offered to negotiate the terms or conditions of 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) Obtaining a credit report or credit score from the borrower or a third party to be used by a person in making a credit decision; (B) Preparing a loan package in order to obtain a mortgage loan on behalf of the borrower; (C) Advising or counseling a borrower on particular mortgage loan terms that have been made available to a borrower, including: (i) Amount; (ii) Payment period; (iii) Payment amount; (iv) Interest rates; (v) Credit-related fees; (vi) Financing costs; or (vii) Options; (D) Negotiating the terms of a mortgage loan on behalf of a borrower with a lender; and (E) Holding oneself out as having expertise in the mortgage lending industry. (b) A person will not be considered to have negotiated or to have offered to negotiate the terms or conditions of 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) Explaining or describing the steps that a borrower would need to take in order to obtain a mortgage loan; (2) Providing general explanations or descriptions such as: (A) Mortgage loan terminology; (B) Financing options not specific to the borrower; or (C) Generic rate sheets; (3) Discussing a borrower’s ability to afford a home; (4) Facilitating communication between a lender and a borrower regarding the terms, rates, or conditions of a mortgage loan, so long as the person refrains from advising or counseling the borrower, or negotiating the terms, rates, or conditions of the mortgage loan; and (5) Obtaining from a borrower the necessary signatures, photographic identification, and other information needed in the ordinary course of business for transmission to a lender.