Interpreting 1026.36(f)(3)(i) for 1/10/14

Posted By: CountryBanker

Interpreting 1026.36(f)(3)(i) for 1/10/14 - 05/14/13 07:27 PM

Our bank errs on the side of caution when it comes to the Reg. Z definition of a (mortgage) loan originator not required to be licensed, so ALL our processors receive the full background / credit / criminal history check before handling mortgage apps [but not NMLS registry]. What tips it in for us is that their responsibilities include sending early disclosures (ETIL; prong 2) AND completing Adverse Reg.B notices & the HMDA screen in the software (prong 1, these are more than administrative & clerical tasks).

Trying to apply 1026.36(f)(3)(i) after Jan 10, 2014 for the situation where an internal employee whom we've already screened moves/transfers into the position of (mortgage) loan processor OR originator. Don't see ANY verbiage on grandfather accommodations, just that we must "obtain for any individual whom the loan originator organization hired on or after Jan. 10, 2014" the criminal background check, credit report, and info from any existing NMLSR entry. If we checked them once within the past XX months, is it mandatory to check a second time, wheter they become a processor or a fully-NMLS-registered originator? Technically, in 2014, we won't have just hired them.