If a loan clerk takes a mortgage application and tells a customer what our rates are, is that enough to require them to be registered and have the NMLS #?

They have no authority to approve the loan or negotiate a rate outside what is listed on the rate sheet. If a customer asks to negotiate then the clerk will take the information to the loan officer.

We don't care to register them but didn't want to do it if it wasn't necessary.

Appendix A to Part 1007—Examples of Mortgage Loan Originator Activities

(a) Taking a loan application. The following examples illustrate when an employee takes, or does not take, a loan application.

(1) Taking an application includes: receiving information provided in connection with a request for a loan to be used to determine whether the consumer qualifies for a loan, even if the employee:

(i) Has received the consumer's information indirectly in order to make an offer or negotiate a loan;

(ii) Is not responsible for verifying information;

(iii) Is inputting information into an online application or other automated system on behalf of the consumer; or

(iv) Is not engaged in approval of the loan, including determining whether the consumer qualifies for the loan.

Thanks. We believe they meet the taking application part. My question is more are they meeting the other prong by giving out the rates that are on the rate sheet.

I guess if giving them a rate at application qualifies under this?

(1) Offering or negotiating the terms of a loan includes:

(i) Presenting a loan offer to a consumer for acceptance, either verbally or in writing, including, but not limited to, providing a disclosure of the loan terms after application under the Truth in Lending Act, even if:

(D) Only the rate approved by the covered financial institution's loan approval mechanism function for a specific loan product is communicated without authority to negotiate the rate.

Does the requirement to have a NMLS apply to loan modifications/workout scenarios? Thank you.

Appendix A (a)(2) Taking an application does not include any of the following activities performed solely or in combination:

(vi) Receiving information in connection with a modification to the terms of an existing loan to a borrower as part of the covered financial institution's loss mitigation efforts when the borrower is reasonably likely to default.

However, if the borrower is not in default or headed there, other requested modifications are likely to be covered.