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#2265846 - 02/04/22 07:33 PM Transferred Application
terpsfan Offline
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We had a MLO leave the bank and we assigned an outstanding application to a new loan officer. We have an investor state that this MLO can not be assigned the application because they were not registered at the time of application. I am not aware of this rule as this MLO did not act as an MLO until they were registered but this application started with the previous loan officer before the new one was registered.

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S.A.F.E. Act Forum
#2265847 - 02/04/22 07:35 PM Re: Transferred Application terpsfan
terpsfan Offline
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Is there a section of the SAFE Act that requires the MLO to be registered before the application was taken in this scenario?

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#2265854 - 02/04/22 08:19 PM Re: Transferred Application terpsfan
rlcarey Online
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Investors make their own rules.
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#2265862 - 02/04/22 08:47 PM Re: Transferred Application terpsfan
Andy_Z Offline
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I assume it makes it easier to audit. As to Randy's comment, I suppose the question is, do you need the investor more than they need you? They have the gold, they make their rules.
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#2265893 - 02/07/22 12:02 PM Re: Transferred Application terpsfan
terpsfan Offline
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In this case we will just have to transfer to a different MLO as the investor will not budge but I just wanted to make sure I was not missing anything.

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#2265895 - 02/07/22 12:21 PM Re: Transferred Application terpsfan
rlcarey Online
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Galveston, TX
You showed them this - correct?

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.

Basically, they are asking you to violate Regulation Z, if the new MLO was actually responsible for the transaction at closing.
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#2266045 - 02/09/22 12:17 PM Re: Transferred Application terpsfan
terpsfan Offline
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The loan hasn't closed yet. The investor underwrites it prior to closing and we updated their system to reflect that we were transferring it to the new MLO. They immediately kicked it back and said they will not purchase if we transfer to this MLO because the MLO must have been active at the time of application even though the old MLO took the app. I requested where they got this from and they said they are too tied up with HMDA to provide support.

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#2266047 - 02/09/22 12:20 PM Re: Transferred Application terpsfan
rlcarey Online
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rlcarey
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Galveston, TX
Then you are at the mercy of your investor.
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