These two documents are provided pursuant to the provisions of Chapter 13-05-01 of North Dakota’s Administrative Code. They are required to be provided by “money brokers” in connection with services provided by such brokers.
While the Administrative Code does not define “money brokers,” the statutory law from which this chapter of the Code derives its authority (Chapter 13-04.1 of North Dakota’s Centennial Code) does define them as being persons or entities “who, in the ordinary course of business, engages in money brokering.” (N.D. Cent. Code § 13-04.1-01.1) “Money brokering” is further defined, in part, as “the act of arranging or providing loans” (Ibid. § 13-04.1-01.1)
Between these definitions and the provisions of North Dakota’s licensing laws, “money brokers” include both mortgage brokers and mortgage lenders. Therefore, we will be configuring Cx1904 and 1905 to print when “Lender is a Broker” equals “Allow Any.”
We will also be adding the phrase “(if applicable) the” before “lender” in the tenth checklist item on Cx1904, to indicate that one of the services the money broker will perform is to maintain regular contact with the lender, but only if applicable (e.g. the money broker is acting as the mortgage broker in connection with the loan).
This change will take effect on September 27, 2014. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
September 24, 2014