Afternoon all, I had a MLO reach out to inform us that they were possibly going to be named in a lawsuit related to an HOA they are a part of, but based on a scenario that is mostly regular HOA stuff, nothing related to their own actions as an MLO or even connected to a covered loan. I've since found the NMLS page that somewhat discusses this, and references a
CFPB Letter that identifies some examples, but the statute and reg don't define "disciplinary action." We're trying to determine what this potential lawsuit may mean for reporting this to the NMLS, and any others that may need to be notified, and wanted to see if anyone had any similar experiences to share, or other sources to look into.