Fellow Forum Members I need your help please.
Our external compliance auditor is stating that the NMLS ID number is required to be on a Consumer Real Estate “Open-End” Note and Deed of Trust. Our platform is not putting this number on these two documents – it is only included on Closed End. I believe I found a reference in Reg. Z where open end is excluded from this requirement but he disagrees. In addition, our Platform provider is agreeing with his option as well. I have to be able to prove it. Can anyone help please?
Thanks.

I see nothing that excludes open-end credit. He is looking at Regulation Z and not the SAFE Act.

I was looking at 1026.36 (b) which is the Scope of the Special Rules. It is as follows:

(b) Scope. Paragraphs (c)(1) and (c)(2) of this section apply to closed-end consumer credit transactions secured by a consumer's principal dwelling. Paragraph (c)(3) of this section applies to a consumer credit transaction secured by a dwelling. Paragraphs (d) through (i) of this section apply to closed-end consumer credit transactions secured by a dwelling. This section does not apply to a home equity line of credit subject to § 1026.40, except that paragraphs (h) and (i) of this section apply to such credit when secured by the consumer's principal dwelling and paragraph (c)(3) applies to such credit when secured by a dwelling. Paragraphs (d) through (i) of this section do not apply to a loan that is secured by a consumer's interest in a timeshare plan described in 11 U.S.C. 101(53D).

Do you still think then that it applies to open-end? I find it hard to believe that our doc provider would not have provided that information on open-end real estate if it was supposed to be on there. They guarantee compliance 100%.

Very good.

This section does not apply to a home equity line of credit subject to § 1026.40, except that paragraphs (h) and (i) of this section apply to such credit when secured by the consumer's principal dwelling and paragraph (c)(3) applies to such credit when secured by a dwelling.

Since the Name and NMLSR ID on loan documents is a requirement of 1026.36(g), I have to agree with you and your auditor is wrong.

I forget they put the scope upfront in this section. you are right on.

Oh, you don't know how much I appreciate that opinion. I have been trying to get a definitive answer to this question....
Now, to convince my auditor... LOL.