The MLO that made the decision on a loan resigned before a loan closed. Should I leave his Name and Number on the CD, Note and DSD because he was the primary responsible? Of do I need to change it to an existing LO, even thought they had nothing to do with the credit decision.

I've not had this issue come up before.

As I'm sure you know, the commentary says to list the originator with "primary responsibility for the transaction at the time the loan document is issued."

I believe you will need to change it. My thought is that I'm not sure how a former employee can be "primarily responsible" for a transaction at the time the loan document is issued. Also, I have heard reports of secondary market investors requiring corrections when a former employee is listed as the MLO.

Paragraph 36(g)(1)(ii)
1. Multiple individual loan originators. If more than one individual meets the definition of a loan originator for a transaction, the name and NMLSR ID of the individual loan originator with primary responsibility for the transaction at the time the loan document is issued must be included. A loan originator organization that establishes and follows a reasonable, written policy for determining which individual loan originator has primary responsibility for the transaction at the time the document is issued complies with the requirement. If the individual loan originator with primary responsibility for a transaction at the time a document is issued is not the same individual loan originator who had primary responsibility for the transaction at the time that a previously issued document was issued, the previously issued document is not required to be reissued merely to change a loan originator name and NMLSR ID.

If the MLO is no longer there - how can they have primary responsibility when the CD and other documents are produced??

the name and NMLSR ID of the individual loan originator with primary responsibility for the transaction at the time the loan document is issued must be included.

The secondary market will also probably kick it back.

Thanks. It wasn't entirely clear to me....I guess they mean each specific loan document at the time a loan document is produced. I still don't consider the 'new guy' "responsible" for any of it ...but thanks...I just wanted to make absolutely certain.

I get the thought process (as its an underwriting/safety & soundness concern). That said, I think of it as "who should the consumer contact?" In that regards, it makes since as the former employee isn't there for the consumer to contact. The prefatory text even references the word "contact," so I think the intent is that the bank needs to assign someone to answer questions for the consumer. Just my $0.02.