We are federally insured & state chartered bank based in CA. Our MLOs are registered with under the NMLSR of the SAFE Act under Regulation "G". The question came up as to whether one of our MLOs could work around the NMLS requirements in order to originate one portfolio residential mortgage loan in the state of Utah.

Now according to the SAFE Act, under the de minimus exception you may originate 5 or fewer residential mortgage loans within a year.

Would the MLO be able to use the de minimus exception? I would appreciate any guidance.

Federally registered MLOs only get one NMLS registration. It follows them wherever they go, they just have to keep the info updated. It is not a state specific number. Does Utah require federally registered MLOs to be licensed? Unless the state of Utah has additional requirements for bank MLOs to operate in their state, the NMLS registration your MLOs currently have is sufficient for them to originate a loan in Utah. There would be no concern for how many loans they have originated if they are already registered.

Regardless, I don't think you can use the de minimis provision on a state by state basis. The MLO has either originated more then 5 covered loans or they haven't. I don't see any provision in the regulation for how many loans they originate by jurisdiction.

Hi Dani,

In answer to your question, yes our bank MLO is federally registered and currently maintains his NMLS number on file. Thank you.