(a)

1. (1) Under the definition of a loan officer, Arkansas Code § 23-39-502(11)(A)(iii), and the definition of a mortgage broker, Arkansas Code § 23-39-502(15)(C), a person may be considered to have negotiated or offered to negotiate the terms or conditions of 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) Obtaining a credit report or credit score from the borrower or a third party to be used by a person in making a credit decision;
   2. (B) Preparing a loan package in order to obtain a mortgage loan on behalf of the borrower;
   3. (C) Advising or counseling a borrower on particular mortgage loan terms that have been made available to a borrower, including:

(i) Amount;

1. (ii) Payment period;

   1. (iii) Payment amount;

      1. (iv) Interest rates;
      2. (v) Credit-related fees;
      3. (vi) Financing costs; or
      4. (vii) Options;
   2. (D) Negotiating the terms of a mortgage loan on behalf of a borrower with a lender; and
   3. (E) Holding oneself out as having expertise in the mortgage lending industry.

(b) A person will not be considered to have negotiated or to have offered to negotiate the terms or conditions of 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) Explaining or describing the steps that a borrower would need to take in order to obtain a mortgage loan;

2. (2) Providing general explanations or descriptions such as:

   1. (A) Mortgage loan terminology;
   2. (B) Financing options not specific to the borrower; or
   3. (C) Generic rate sheets;
3. (3) Discussing a borrower’s ability to afford a home;
4. (4) Facilitating communication between a lender and a borrower regarding the terms, rates, or conditions of a mortgage loan, so long as the person refrains from advising or counseling the borrower, or negotiating the terms, rates, or conditions of the mortgage loan; and
5. (5) Obtaining from a borrower the necessary signatures, photographic identification, and other information needed in the ordinary course of business for transmission to a lender.