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#2006295 - 04/06/15 01:14 PM NMLS ID # on Original Application
rhobbs Offline
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Joined: Mar 2015
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Are bank's required by the SAFE Act to list an individual originator's NMLS ID # on blank applications prior to handing them to a consumer? Often someone will come in to one of our branches to pick up an application, but until they've returned it, an MLO is not assigned to the transaction.

Reg Z lays out some pretty specific requirements, and I don't see any exception for situations where an MLO with primary responsibility has not been identified. Is there an implied exception or does one not exist?

12 CFR 1026.36(g):

(g) Name and NMLSR ID on loan documents. (1) For a consumer credit transaction secured by a dwelling, a loan originator organization must include on the loan documents described in paragraph (g)(2) of this section, whenever each such loan document is provided to a consumer or presented to a consumer for signature, as applicable:

(i) Its name and NMLSR ID, if the NMLSR has provided it an NMLSR ID; and

(ii) The name of the individual loan originator (as the name appears in the NMLSR) with primary responsibility for the origination and, if the NMLSR has provided such person an NMLSR ID, that NMLSR ID.

(2) The loan documents that must include the names and NMLSR IDs pursuant to paragraph (g)(1) of this section are:

(i) The credit application;
...

Thanks.

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#2006318 - 04/06/15 02:27 PM Re: NMLS ID # on Original Application rhobbs
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
The MLO must provide their NMLS # before acting as a MLO or with the first written communication.

IMO 1026.36(g) deals with originated loans. IOWs, the requirement applies to the MLO that originates the loans. If the loan is not originated then there are no loan documents to place the NMLS # on.

(ii) The name of the individual loan originator (as the name appears in the NMLSR) with primary responsibility for the origination

From the Commentary

Thus, for example, if an individual loan originator employed by a bank originates a loan, the names and NMLSR IDs of the individual and the bank must be included on covered loan documents.
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#2006351 - 04/06/15 03:20 PM Re: NMLS ID # on Original Application rhobbs
rhobbs Offline
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Joined: Mar 2015
Posts: 6
Thanks Dan. I had never interpreted the regulation to require an individual MLS ID on a blank application, but someone elsewhere tried to make the point that it was necessary.

I appreciate the insight.

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#2006559 - 04/07/15 03:19 PM Re: NMLS ID # on Original Application rhobbs
*W*W* Offline
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What do you do for an app that's printed off your website and submitted at a branch location?
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Opinions expressed are my own and do not reflect the views of my employer.

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#2006613 - 04/07/15 05:39 PM Re: NMLS ID # on Original Application rhobbs
rhobbs Offline
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Joined: Mar 2015
Posts: 6
Currently our blank applications list only the Bank's NMLS number. Individual NMLS numbers are not entered on the application until the application has been received and the loan has been approved or denied. At that point, the officer making the decision will enter his or her number.

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