44-1378.01. Applicability

A. This article does not apply to:

1. A person licensed to practice law in this state, while performing any activity related to the person's attorney-client relationship with a homeowner or with the beneficiary, mortgagee, grantee or holder of any lien being enforced by foreclosure.

2. A holder or servicer of an evidence of debt or the attorney for the holder or servicer of an evidence of debt secured by a deed of trust or other lien on any residence in foreclosure while the person performs services in connection with the evidence of debt, lien, deed of trust or other lien securing the debt. For the purposes of this paragraph, the following persons are presumed to be the holder of evidence of debt:

(a) The person who is the obligee of and who is in possession of an original evidence of debt.

(b) The person in possession of an original evidence of debt together with the proper endorsement or assignment.

(c) The person in possession of a negotiable instrument evidencing a debt that has been duly negotiated to the person or to bearer or endorsed in blank.

(d) The person in possession of an evidence of debt with authority, which may be granted by the original evidence of debt or deed of trust, to enforce the evidence of debt as agent, nominee or trustee or in a similar capacity for the obligee of the evidence of debt.

3. A person doing business under any law of this state or the United States that regulates banks, trust companies, savings and loan associations, credit unions, insurance companies, title insurers, insurance producers or escrow companies authorized to conduct business in this state, while the person performs services as part of the person's normal business activities, or an affiliate or subsidiary, or an employee or agent acting on behalf of, any of the foregoing.

4. A person originating or closing a loan in the person's normal course of business if any of the following is true:

(a) The loan is subject to the requirements of the real estate settlement procedures act of 1974 (P.L. 93-533; 88 Stat. 1724; 12 United States Code sections 2601 through 2617).

(b) With respect to any second mortgage or home equity line of credit, the loan is subordinate to and closed simultaneously with a qualified first mortgage loan under subdivision (a) of this paragraph or is initially payable on the face of the note or contract to an entity included in paragraph 3.

(c) The loan is recorded in the real property records of the clerk and recorder of the county where the residence in foreclosure is located and the legal action giving rise to the judgment was commenced before the notice of election and demand for sale.

5. A title insurance company or title insurance agent authorized to conduct business in this state while performing title insurance and settlement services.

6. A person licensed as a real estate broker or real estate salesperson under title 32, chapter 20 while the person engages in any activity for which the person is licensed.

7. A nonprofit organization that is exempt from taxation under section 501(c)(3) of the internal revenue code and that solely offers counseling or advice to homeowners in foreclosure or loan default, unless the organization is an associate of the foreclosure consultant.

8. An individual or entity working with the homeowners in foreclosure to purchase the residence in foreclosure through a short sale provided that the individual or entity does not claim, demand, charge, collect or receive any compensation for the transaction.

B. Nothing in this chapter shall be construed as authorizing conduct for which a license would be required under title 6, chapter 9, article 4.