(1) "Affiliate" means a person who controls, is controlled by or is under common control with another person.

(2) "Applicant" means a person that applies for a license to engage in business as a residential mortgage loan servicer in this state.

(3) "Borrower" means a person that incurs an obligation to repay a residential mortgage loan.

(4) "Branch office" means a location at which a business entity services a residential mortgage loan other than the business entity’s headquarters or principal place of business.

(5) "Business entity" means a corporation, limited liability company, partnership, limited partnership, business trust, joint venture or other form of business organization the constituent parts of which share a common economic interest.

(6) "Controller" means:

(a) A director, officer or general partner of a business entity;

(b) A managing member of a limited liability company;

(c) A person that has a direct or indirect right to vote 10 percent or more of the securities of a business entity that have voting rights or the power to sell or cause the sale of 10 percent or more of any class of a business entity’s securities;

(d) A person that has contributed 10 percent or more to a partnership’s capital or has the right to receive a distribution of 10 percent or more of a partnership’s capital or assets upon dissolution; or

(e) A person that, under the terms of a contract or because the person has an ownership interest in another person, has the power to manage or set policies for the other person, or otherwise direct the other person’s operations or affairs.

(7) "Licensee" means a person that has applied for and obtained or renewed a license from the Director of the Department of Consumer and Business Services to engage in business as a residential mortgage loan servicer in this state.

(8) "Manager" means an individual who has supervisory authority over employees and operations at a business entity’s branch office or other business location.

(9) "Person" means an individual or a business entity.

(10) "Residential mortgage loan" means a loan secured by a mortgage, deed of trust or an equivalent consensual security interest in real property on which four or fewer improvements designed for residential occupancy are planned or situated, including but not limited to individual units, condominiums and cooperatives.

(11) "Residential mortgage loan modification service" means:

(a) A negotiation or arrangement, or an offer or attempt to negotiate or arrange, a change in the repayment obligations for or the terms and conditions of a borrower’s residential mortgage loan, including but not limited to:

(A) A forbearance in collecting one or more payments due;

(B) A change in the interest rate;

(C) A change in the payment or repayment schedule;

(D) A substitution of different loan terms and conditions;

(E) A substitution of a different classification of loan;

(F) A capitalization of any arrearages; or

(G) A reduction in principal.

(b) Collecting or attempting to collect data to submit to a person that performs a residential mortgage loan modification service.

(12) "Service a residential mortgage loan" means to:

(a) Receive a scheduled periodic payment from a borrower under the terms of a residential mortgage loan, including any amounts for deposit into an escrow account the lender establishes in accordance with the Real Estate Settlement Procedures Act, 12 U.S.C. 2609;

(b) Pay to the lender or another person principal, interest and other amounts associated with a residential mortgage loan in accordance with the terms of any contract or agreement for servicing the residential mortgage loan; or

(c) Pay an amount to a borrower, if the residential mortgage loan is a home equity conversion mortgage or a reverse mortgage. [2017 c.636 §2]