Who is considered an Independent Contractor in mortgage loan origination?

An independent contractor in the context of mortgage loan origination is defined as a person who has a contractual agreement to perform services for a licensee without being classified as an employee. This definition is important because independent contractors maintain a level of autonomy and are usually responsible for their own taxes, benefits, and work schedules. The contractual nature of this relationship indicates that the individual is not under the direct supervision of the licensee, allowing them to operate more independently while still providing specialized services within the mortgage industry.

In contrast, employees of a licensee are typically bound by employment agreements and have different rights and obligations. Those who solely take loan applications may or may not fit the independent contractor model, as some could be employees or work in a capacity that does not grant them independence. Similarly, bank employees are typically considered regular employees of the bank rather than independent contractors, which further clarifies the distinction needed in this context.