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#1983249 - 12/15/14 11:49 PM DeMinimis - Employee Previously Registered
TryingtoComply Offline
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Joined: Apr 2013
Posts: 2,199
The West
We have an employee that was previously registered at another institution; however, he never changed his records to our bank with the NMLSR. He's been here over 2 1/2 years. We discovered that he handled a HELOC this year and I'm wondering if we have an issue with the de minimis rule as he does not meet the first prong which says that the employee must never have been registed or licensed through the NMLSR as a MLO.

What are the consequences of this if this is a problem? BTW, the only I know this is because I worked with him at the other institution.
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#1983252 - 12/16/14 12:25 AM Re: DeMinimis - Employee Previously Registered TryingtoComply
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
The regulators will probably only draw and quarter both the LO and the bank (for their lack of due diligence).

If he was subject to State licensing, HUD could impose a $25,000 fine on the MLO.
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#1983256 - 12/16/14 01:40 AM Re: DeMinimis - Employee Previously Registered TryingtoComply
TryingtoComply Offline
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Joined: Apr 2013
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The West
Ok. He was hired prior to my arrival here. I will speak to our Human Resources Manager about a process for identifying MLOs. He is only subject to registration requirements.
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#1983263 - 12/16/14 04:01 AM Re: DeMinimis - Employee Previously Registered TryingtoComply
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
I have to agree that regulators will take a dim view of a process that allowed this to happen. The bank needs to get its act together and take this seriously. Go kick them around. smile
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#1984751 - 12/22/14 10:01 PM Re: DeMinimis - Employee Previously Registered TryingtoComply
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Kathleen! How very like the Grinch at this time of year!
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#1984757 - 12/22/14 10:28 PM Re: DeMinimis - Employee Previously Registered TryingtoComply
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
I was wild that day (only because I know "TryingToComply"!)
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HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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