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#1828335 - 06/27/13 05:40 PM First written communication
Combustible Offline
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Is the loan application considered the first written communication?

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S.A.F.E. Act Forum
#1828345 - 06/27/13 05:53 PM Re: First written communication Combustible
RR Joker Offline
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Not necessarily...what about if you send the application through the mail..wouldn't you have a cover letter? And what about emails, discussing a loan...or early disclosures...that could be the first correspondence if taken over the phone.
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#1828941 - 06/28/13 06:25 PM Re: First written communication Combustible
Combustible Offline
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Let's say the customer comes into the bank and the loan officer fills out an application with them. Does entering the NMLS # on the application count as the first written communication? It's my understanding the customer should be provided with the UI so they can refer to it if need be, and usually the application isn't the item they will keep. I understand secondary market wants the MLO# on the application, but for in house loans, it doesn't seem like the application would be considered a written communication, but rather as you mentioned RRJoker, an early disclosure is more like what the regulators would consider a written communication?

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#1829018 - 06/28/13 07:06 PM Re: First written communication Combustible
rlcarey Offline
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An application IMHO is not a written communication from the MLO or Bank. The flow of information on an application is going in the other direction.

Have them put the number of their letterheads and on the cover letter for the early disclosures. That will cover it 99% of the time and then I think you can stop over analyzing this.
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#1835818 - 07/24/13 01:54 PM Re: First written communication Combustible
Trees Offline
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We had a webinar recently that said we MUST have the number on hte application, note/loan agreement and mortgage document. I am not seeing that in any of my materials. I don't recall an amendment to this Act recently. Someone said that a change was made to Z that made this additional use of the # mandatory. What's the scoop?

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#1835833 - 07/24/13 02:31 PM Re: First written communication Combustible
raitchjay Offline
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OK
That becomes effective January 10, 2014 as part of the LO Compensation rule. I think most banks, at least banks that deal with the secondary market where investors have already been requiring it, have been doing it awhile.
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#1836167 - 07/24/13 09:04 PM Re: First written communication Combustible
Skittles Offline
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TN
raitchjay - if we do not pay our MLO's per loan (they are salaried), then will this apply to our in-house loans? I know this number is on secondary market loans, but don't think it's on all in-house documents - especially the note.

Thanks!
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#1836178 - 07/24/13 09:14 PM Re: First written communication Combustible
raitchjay Offline
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OK
Skittles, it's been a bit since i reviewed the LO Compensation rule, but glancing back at my summary, i don't think it matters--their NMLS #'s will need to be on the app (and other documents such as the note and security agreement). Your bank sounds like ours as far as compensation and i'm proceeding with the idea we'll need the MLO's NMLS # on the app (we already do it as a matter of practice), the note and security agreement come next January.
Last edited by raitchjay; 07/24/13 09:15 PM.
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#1836182 - 07/24/13 09:17 PM Re: First written communication Combustible
Skittles Offline
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TN
Thanks!
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#1836226 - 07/25/13 01:32 AM Re: First written communication Combustible
rlcarey Offline
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Galveston, TX
1026.36(g) Name and NMLSR ID on loan documents.

It will make no difference whether you pay additional compensation to the MLOs or not. The idea is that the regulators want to know who to go after if there is something wrong with the loans.
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#1836449 - 07/25/13 05:10 PM Re: First written communication Combustible
RockChucker, CAMS Offline
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The Country
Most loan software programs will put in the NMLSR number automatically.
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