The end of Appendix A, in the examples:

(c) Offering or negotiating a loan for compensation or gain. The following examples illustrate when an employee does or does not offer or negotiate terms of a loan “for compensation or gain.”

(1) Offering or negotiating terms of a loan for compensation or gain includes engaging in any of the activities in paragraph (b)(1) of this Appendix in the course of carrying out employment duties, even if the employee does not receive a referral fee or commission or other special compensation for the loan.

(2) Offering or negotiating terms of a loan for compensation or gain does not include engaging in a seller-financed transaction for the employee's personal property that does not involve the bank.

We plan on registering our loan assitants just to be safe, because sometimes they do call the applicant to give them the terms the officer decides on and they sometimes take information such as financial, paystubs, etc.. Is anyone else doing this?

Yes. We are registering all loan officers and loan assitants. The loan assistants are being registered because they not only may call and communicate the terms of the approved credit, but alos because our assistants produce and mail the GFE to the borrower.

Thanks Dani.
Another questions: is anyone gathering information from MLO's now or are you waiting until the registry puts out a form to complete?

We're waiting for the registry to provide more information. However, in the meantime, I printed the Form MU4 from the registry, to get an idea of what the input screen might look like. MU4 is the form that non-depository institution MLOs must complete to register.

same here

I'm conducting training for all of our Consumer RE Lenders/assistants in November. Will provide each of them with the MU4 so they can begin gathering the information they will need to register. They will register themselves, but it helps to be prepared.

Great information - thanks!

So we can let the MLO's register themselves? That will save our HR department, as our administrator, a lot of time.

It looks like the MU1 and the MU4 have now been revised [as of 9/28/2010] and redesignated as the MU1R and the MU4R and are located at this link:

http://mortgage.nationwidelicensingsystem.org/fedreg/Pages/Forms.aspx

Are these the forms that federally regulated banks are required to use?

It looks like the NMLS will have new forms for the federal registration process. However, the documents they posted are not the forms themselves. They are documents that explain the field requirements for the data that needs to be completed on the forms. I think they are doing this to help the large banks that will want to register their MLOs using the batch process. This will help their IT people start to think about what they will need to program.

I was reading through the Form MU4R, which outlines the information each MLO registrant must provide to the registry. Some of the information items seem a bit intrusive to me, and, I suspect, will seem the same to others:

home phone number
current residence address
weight

I'm so glad that I wrote our procedures to have the MLOs input their info into the registry. I could just see their reaction when our SAFE admiinstrator asks them "Your weight?"

The NMLS website has been updated with information about two factor authentication that will be required for depository institutions accessing the federal registry.

http://mortgage.nationwidelicensingsystem.org/fedreg/Pages/TwoFactor.aspx

Just want to clarify something for me:

Are the fingerprint requirements only when you hire someone or are registering a MLO for the first time, provided there are not fingerprints on file that are less than 3 yrs old?

It is not required every three years is it?

Do I have all/any of this correct?

Banks complete MU1R &
Bank MLOs complete MU4R

The batch upload is the minimum required info and MU4R must still be completed. The batch upload is used as a base record.

Is anyone including the unique identifier on the adverse action letter when a loan is denied before any disclosures or other written communication is provided? The way the reg reads is that a registered MLO shall provide their unique identifier to the consumer through the originator's initial written communication with a consumer, if any, on paper or electronically. We have a fast turnaround and do not send disclosures if a loan is declined before the 3 day disclosure window. The decline is from our institution, not the MLO. I believe the "if any" allows that there may not be written communication from the actual MLO.

Would appreciate opinions. Thank you.

It would already be on your 1003, no?

Not necessarily. We have the 1003 on our web site, where people can print and complete it. We will not print any MLO ID, because there is no way of knowing which--if any--MLO might receive the application.

You are correct that the ID needs to be on the initial lwritten communication from the MLO to the applicant. We are putting the IDs on the MLOs business cards, in their signature lines on emails and letters, on earlies, and also next to their name on the AAN.

Depending on the way you draft your AAns, will determine if you need to put their ID. Our AANs are drafted with the lloan officer's name on them, making it lkook like the MLO has sent the notice, so the ID would be required. If the AAN was drafted in a way where the MLO was not tied to it (say for instance signed by someone in loan operations who doesn't accept applications), you may be able to get away with not listing the ID.

IMHO, it is probably safer to just include it and be done with it.

Our adverse action notices are sent through our consumer lending system, not sent or signed by our individual MLOs. Also, we take our applications through a call center, so there is no 1003 or any other written communication on loans denied within 3 days, other than the adverse action letter.

Maybe this has been covered and I just missed it, but do we have to give the customer instruction on what the ID# is and how to access the registry or are we just assuming that every consumer is going to automatically know what the ID# is for?

I know that we have to be able to provide a list of all of our MLOs and their identifiers, but I don't recall the final rule giving details on explaining the process to the customer. Did I miss this somewhere?

The rule requires the MLO ID to be given to the consumer. It does not require that you educate the consumer in what it is, what it means, which web site to access for more information, etc.

Thanks Sinatra Fan. That is what I thought; just wanted to make sure I was on the right track.

Are you saying the denials are automated and dispersed directly by the computer based on the information entered by the call center personnel? If so, you may be able to argue not including the ID. I, as a consumer however, would assume that the AAN came from the person who took my application unless the notice indicated otherwise.

If it were me (and this is just my opinion and hypothetical since we don't have a call center), I would probably include an ID on the form, either by designating someone to be the AAN MLO, or by registering the people in my call center, depending on if they meet the 2 prong test.