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#1796383 - 03/19/13 08:08 PM Dual employee
QueenBB Offline
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TX
If an MLO works for a national bank and has a NMLS# associated with that bank, can they also be an MLO for the bank's wholly-owned subsidiary that is a Mortgage Company? Is there any type of conflict there?

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S.A.F.E. Act Forum
#1800559 - 04/02/13 06:32 PM Re: Dual employee QueenBB
QueenBB Offline
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Joined: Jan 2006
Posts: 190
TX
I could still use some help here.

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#1803017 - 04/09/13 08:47 PM Re: Dual employee QueenBB
WorkerB Offline
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Joined: Apr 2013
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Hi QueenBB, I had this come up in NJ for the MLO who acts as the QI. The situation was that he is federally registered and licensed in NJ as an employee of the subsidiary. NY does not exempt subsidiaries so he also wanted to be federally registered under the Bank to originate NY loans under the Banks name. The legal option we received was that the individual could do this as long as he did not originate loans in NJ for the Bank. The opinion was based on NJ state law so each state may be different.
Hope this helps some.

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#1803114 - 04/10/13 12:46 PM Re: Dual employee QueenBB
Dani York, CRCM Offline
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Dani York, CRCM
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Posts: 3,663
TN
Queen BB,

Under the SAFE Act, I know of no restrictions on dual employment, provided that they meet the requirements of an MLO under the particular industry environment (bank vs non-bank) that they are working in AND provided that there are no additional restrictions in your State's version of the SAFE Act.

The SAFE Act is about ensuring that MLOs are qualified, on a list somewhere (registered or licensed), and that consumers have enough information to decide (based on the info in the list) if they want that particular MLO handling their loan. So in your case, I would say that as long as the MLO has met the registration requirements for the bank and the licensing requirements for the non-bank subsidiary, you should be fine (again provided that your State's SAFE Act does not prohibit/restrict dual employment).
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I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

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#1815389 - 05/17/13 04:18 PM Re: Dual employee Dani York, CRCM
QueenBB Offline
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Joined: Jan 2006
Posts: 190
TX
So my question is this: Does the bank employee need to take the training and testing that is required of an MLO for a mortgage company? The mortgage company (because it is a subsidiary of the national OCC-regulated bank) is also regulated by OCC. Does this pre-empt that extra training?

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#1815578 - 05/17/13 08:04 PM Re: Dual employee QueenBB
Dani York, CRCM Offline
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Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
If the mortgage company is classified as a federally regulated financial institution, I would say that the MLO does not have to take the training and testing of a non-federally regulated FI, UNLESS required by your state law.

Best bet though would be to call your regulator and ask them.
_________________________
I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

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