(a)

1. (1) Under the definition of a loan officer, Arkansas Code § 23-39-502(11)(A)(i) and (ii), and under the definition of mortgage broker, Arkansas Code § 23-39-502(15)(A) and (B), a person may be considered to have solicited or accepted, or offered to solicit or accept, an application for a mortgage loan when the person:

   1. (A) Engages in certain activities; and
   2. (B) Receives direct or indirect compensation or gain from a mortgage broker or mortgage banker.

2. (2) These activities include, but are not limited to the following:

   1. (A)

(i) Materially assisting a borrower in completing, in whole or in part, an application for a mortgage loan, regardless of whether or not a mortgage loan is made.

1. (ii) Materially assisting may include advising or counseling a borrower about the:

(b) (b) Desirability or suitability of available mortgage loan programs.

1. (iii) Materially assisting does not include communication of generic information related to the application process, such as:

(b) (b) A general description of the loan application process;

1. (B) Recommending, referring, or steering a borrower to a specific lender based upon a duty to or incentive from the lender;

   1. (C) Holding oneself out as being a mortgage broker, or loan officer, or having knowledge or expertise in mortgage lending through advertising or promotional materials such as:

      1. (i) Business cards;
      2. (ii) Stationery;
      3. (iii) Brochures;
      4. (iv) Rate sheets; or
      5. (v) Other promotional items;
   2. (D) Holding oneself out as having knowledge or expertise in mortgage loans or mortgage loan modifications; and
   3. (E) Referring a consumer to a loan officer or mortgage broker.

(b) A person will not be considered to have solicited or accepted or to have offered to solicit or accept an application for 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. (1) Informing a borrower that lenders are available to assist in a mortgage loan transaction;
2. (2) Making lender application materials available to a borrower;
3. (3) Informing a borrower that a lender has approved or denied the borrower’s application; and
4. (4) Physically handling completed documents, transmitting completed documents, or delivering completed documents or correspondence to a lender on behalf of a borrower.