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Bulletin C-04-3




TO: All Residential Lenders, Brokers and Servicers

SUBJECT: Public Chapter 747/ Mortgage Loan Originator Registration

DATE: June 21, 2004

On May 24, 2004, amendments to the Residential Lending, Brokerage and Servicing Act, Tennessee Code Annotated, Title 45, Chapter 13 ("Mortgage Act") were signed into law. This bulletin is intended to inform the industry of the more significant changes enacted by this legislation.

Amendments to the Mortgage Act that are effective immediately include:

  • Removes from the Mortgage Act the 14-day notice requirement of the Department's intent to conduct an examination.
  • Provides the Commissioner with specific authority to order civil money penalties up to ten thousand dollars ($10,000.00) per violation.

Amendments to the Mortgage Act that are effective January 1, 2005 include:

  • Requires mortgage loan originators to affiliate with one and not more than one licensee or registrant, and for the sponsoring licensee/registrant to submit to this Department a completed Mortgage Loan Originator Registration Form(s) along with a (proposed) registration fee of one hundred dollars ($100.00) per mortgage loan originator.
  • Requires that the mortgage licensee/registrant with whom the mortgage loan originator affiliates be responsible for and supervise the acts of the mortgage loan originator(s).
  • Subjects license/registration of the mortgage licensee/registrant to suspension/revocation for the conduct of the mortgage loan originator(s).
  • Requires annual renewal of registration of the mortgage loan originator(s) along with payment of the applicable fee(s).
  • Requires licensees/registrants under the Mortgage Act to designate a Managing Principal to assume overall responsibility for the Tennessee-based operations and to designate a Branch Manager to be responsible for the operation of each branch office in Tennessee and to ensure that those individuals so designated have sufficient experience to operate the business lawfully.
  • Authorizes the Commissioner to charge actual expenses for examination(s) of licensees/registrants.
  • Authorizes that a (proposed) fee of twenty-five dollars ($25.00) be charged for issuing substitute licenses or certificates of registration.

The mortgage loan originator registration forms required by Public Chapter 747 will be mailed to each licensee/registrant in late December. At that time, the required forms including the "Loan Originator Registration Form", the "Designation of Managing Principal", the "Designation of Branch Office Manager", and "Notification of Change of Status" may also be viewed and printed from the Department's web-site at The registration forms and fee are due beginning January 1, 2005.

This bulletin is for informational purposes only and is not meant to be exhaustive in nature or all-inclusive with regard to the provisions outlined in the subject amendments to the Mortgage Act. Licensees and registrants are encouraged to read the entirety of the Act, in addition to the amendments (Public Chapter 747) to which they are subject. Public Chapter 747, as well as information and answers to frequently asked questions, may be viewed on-line from the Department's web-site as listed above.

The entirety of the Mortgage Act may be viewed on-line by going to and clicking on the word "Tennessee". Click on the plus sign (+) next to the blue heading "Tennessee Code" on the left side of the screen. Scroll down to Title 45, and click on the plus sign (+). Scroll down and click on Chapter 13; all sections of this chapter will then be listed and may be selected and viewed.

Additional information may be requested from the Department by contacting the Mortgage Loan Originator Helpline at 615-741-2837 or the compliance Division at 615-741-3186.

Kevin P. Lavender