We take on line mortgage applications, "unsolicited" in that they are done without a MLO solciting or acting YET. I say yet, as they are given to MLO's after being received. In the past we have chosen to leave the 1003 page three WIHTOUT an MLO and NMLS number and use just our Bank's Number.

We are now being cited by our in-house compliance as needing an LO. My issue is this: We use Mbot and they have a link to a PDF which the borrower clicks on to get that info. SO we are now going to use our VP of lending, name and NMLS, on each and every 1003 that comes in on line and switch it over after the fact.

Doesn't this seem abusurd, since they have not had nor will have any dealings with him.

Does anyone do something different. There is no guidance that I can find on this. Any thoughts?

Thanks!

It doesn't sound like the loan officer has met either prong of the two-prong test, so I don't see an issue with not having the number on the application.

Is your auditor saying that the MLO number needs to be on the application when the customer fills it out? Or are they citing you for not adding the number after the application is assigned?

If the former--there is no MLO number to include because you don't know who it will be assigned to, nor has anyone acted as an MLO under the SAFE Act.

If the latter--they are probably citing you under the Reg Z compensation rule where the MLO name and number is required to be listed on the application along with the bank name and number.

Have a conversation with the auditor to find out for sure though.