Answer from John: How your staff members are compensated doesn't affect their qualification as an MLO, unless they are working as volunteers. What matters is whether an individual's activities in connection with residential mortgage loans meet both parts of the two-pronged definition of mortgage loan originator.
Answer from Andy: This BOL Banker Tool will help you identify employees subject to the SAFE Act based on what they actually do. (Do they take consumer residential mortgage loan applications secured by a dwelling and do they offer or negotiate terms for compensation? The form has the more finite details on this two-pronged test.) You can then decide to register them, or restrict their activities in this area so they are excluded from the SAFE Act.
First published on BankersOnline.com 3/7/11