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Publicly Disclosing MLO's (SAFE Act)

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Question: 
I had a question about publicly disclosing MLOs. I recently did some compliance testing on a bank and noticed that the list provided to us of registered mortgage lenders was longer than those listed on the bank's website. I know that listing MLOs on the financial institution's website is one requirement of the SAFE Act. Are these institutions required to publicly disclose all of the registered mortgage lenders or only those that actually make mortgage loans (in regards to the SAFE Act)?
Answer: 

There is no requirement in the SAFE Act mandating the financial institution list their MLOs on the financial institution's Web site. The financial institution is only required to make available their list of MLOs in a way that is the most practical for them. See Section ___.105 of the regulation. Other methods are discussed in the preamble to the regulation in the Federal Register. If you search the Federal Register document using "Web" as the search term you will find the reference.

I'm not aware of anything that would prevent the financial institution from choosing to disclose on their Web site only the MLOs that deal with their "residential mortgages" vs their "consumer mortgages" although I'm not sure why they would. However, if I contact them for the list of their MLOs they should provide me their full list not a partial list.

First published on BankersOnline.com 1/23/12

First published on 01/23/2012

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