Hi All,

I was just reading the "Loan Originator Compensation Requirements under the TIL". Am I reading this right, the final rule requires that loan originators provide their Unique Identifiers under the NMLS on all loan documents? Does this mean that the loan originator's Unique ID # must be on all of the documents that the customers sign?

I noticed our Encompass Banker version will be showing the name and number on all the earlies, application and recording docs.

I don't see where you get "all of the documents."

(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;

(ii) [Reserved]

(iii) The note or loan contract; and

(iv) The security instrument.

Well maybe I am reading this incorrectly. I am reading th CFPB download regarding this new rule. It states: "The final rule also implements a Dodd-Franck Act requirement that loan originators provided their unique identifiers under the NMLS on loan documents". Is the list above considered Enumerated loan documents?

You are referring to a CFPB summary statement. MyBrain gave you the actual regulatory citation.

Thank you for your help

What does (ii) [Reserved] means? Is that considered to be a particular document?

No. It means that specific citation is not currently used and it is reserved for future use.

The Bureau has a plan for that list, and already knows what will fall into that slot (ii) entry. But it doesn't exist yet. My best guess is that "Reserved" will be replaced by whatever the Bureau calls its combined early disclosure under RESPA and TILA.

Oh I see now. Thanks gentlemen so much for clarifying this point, because I didn't have a clue what it meant.

John is right on. You can find in the preamble:

Accordingly, the Bureau expects to adopt the requirement to include loan originator names and NMLSR IDs on the integrated disclosures at the same time that the rules implementing the 2012 TILA-RESPA Integration Proposal are adopted.

Aha! I wonder if I read that once when skimming the regulatory drek or just guessed correctly. Thanks, Randy!

What about online mortgage applications - there is no specific MLO designated for that application; would it be acceptable to include a link to the list with all MLOs to meet the requirement for the NMLS ID to be listed on the credit application?

We list ours on our website. Then your first correspondence with the applicant should contain the specific MLO (would be my approach)

What sort of documents would be covered under "security instrument"? If the borrower's primary residence is a mobile home or even a houseboat, these are titled so there wouldn't be a security deed would there? Would the UCC financing statement be the document that would require the NMLS identifier? I've gone back and read through the final rules and it doesn't speak to this specifically. It references documents that include loan terms. Just wanting to be sure we have covered the appropriate documents. Thank you!

I have a similar question to Jan94 - we do a fair number of CD or investment secured loans where we take a lien on the property as an accommodation. Does the NMLSR information need to appear on the security agreement for the CD as well as on the deed of trust?

No.

Thanks Randy.

*bump*

Would "security instrument" include any applicable riders? I.e. ARM riders or Construction riders? What if the NMLS # is already listed on the Deed of Trust?

IMO, I would say any part of the instrument necessary to secure the financial institution's interest in the property would be included.


Am I wrong in thinking both the loan originator and loan originator organization ID should be on those documents? (If table funded?)

I have several people who are legally named Richard but go by Rick, or William and goes by Bill. They are registered in the NMLS as William Smith, but have noted in Other Names Bill Smith. Currently their documents say Bill Smith or Rick Smith and that does not cause a problem with investors or regulators because they are listed in the NMLS that way under Other Names. Does this new rule mean that they can only use William Smith? Or can they still use Bill Smith since it’s in the NMLS?

BUMP!!!!!

I am also wondering if the 12 CFR 1026.36(g) requirement that the app, note, and security instruments include "The name of the individual loan originator (as the name appears in the NMLSR) with primary responsibility for the origination" means that the exact name under which the MLO registered must be recorded, as opposed to any AKAs that have been included in the MLO's NMLS record.

Can't find anything addressing this directly, other than an FAQ from Washington state that appears to predate the Reg Z requirement...

Banks are being cited when the name provided under .36(g) doesn't agree with one of the names registered with the NMLS (assuming the individual is registered as an MLO). All the MLO needs to do is set up one or more aliases or nicknames on the NMLS database.

Thanks John!

If I understand your post correctly, you have seen banks cited since January for using an alias not listed in NMLS, but not for using aliases that are listed as other names in the registry. Is there anything documented from the agencies clarifying that the Reg Z requirement that the name be recorded "as the name appears in the NMLSR" includes both the legal name and aliases?

I've surveyed a few larger and several small banks, and there is not a consistent interpretation. Some are requiring the full legal name that appears in the "name" field to comply, while others are allowing the aliases that appear in the "other names" field to be used.

Given the confusion, I would have thought the CFPB would have clarified by now...though it may be a situation where the question has not been directly asked because of concern about what the answer may be.

If you can point me toward anything documented from an official source that addresses this, I'd be extremely grateful!

BX

Why would you put "Billy Bob" on a legal document to begin with????