I understand that there is a VA state law that limits you to three loan originations in Virginia, per rolling 12 month period, if you are not licensed. We purchase loans form a correspondent lender there and was wondering if that counted under the three limit. TO me it is not an origination it is a purchase and would not fall under the limit, but we are looking for some guidance.

Have you looked over the information on this site? https://mortgage.nationwidelicensingsystem.org/slr/Pages/DynamicLicenses.aspx?StateID=VA

Yes I have this information. I think I am relatively clear that we can not originate a loan, but we could purchase a loan from a correspondent lender and that would not be subject to the 3 loan limit nor require us to be licensed, or have a loan officer licensed in that state. My concern is when we underwrite a correspondent loan to issue a commitment to purchase a loan. Does that put us in danger of running afoul of the 3 loan limit?

I assume you are not a depository institution. I do not believe underwriting pulls the trigger as long as you are not the creditor. If you are involved in negotiating loan modifications is a grey area.

Correct we are a non-depository lender and I agree 100%, negotiating terms is straying over the line to originating. Thank you for your guidance