I would suggest contacting your state department of financial institutions and your federal regulator. It looks like a conflict of interest to me. The NMLS license/registration is the last thing to worry about. You need to resolve whether or not this person can be both a broker and a bank MLO, even if in different markets.
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.