Reading through the requirements I cant find where the NMLS# HAS to be on the business cards or emails. I see where it has to be included with any written communication. Can anyone give me a reference where to find the exact requirements of where all it needs to be?

There are no specific requirements of where to put it, only that it has to be dislosed:

1--before acting as an MLO
2--with the first written communication with the borrower
3--upon request

How your bank decides to that is up to you. Alot of us on BOl have chosen to use business cards and email signatures, but those methods are not required by the rule.

Here is the exact requirement:
(a) The bank shall make the unique identifier(s) of its
registered mortgage loan originator(s) available to consumers
in a manner and method practicable to the institution.
(b) A registered mortgage loan originator shall provide his or her unique identifier to a consumer:
(1) Upon request;
(2) Before acting as a mortgage loan
originator; and
(3) Through the originator’s initial written communication with aconsumer, if any, whether on paper or electronically.

Items (b)(1-3), though not specific, are why we include the ID where we do (business cards, email and stationary returns, the loan application). Hope this helps.

Regarding business cards and flyers, the supplementary information says this...

As noted in the SUPPLEMENTARY INFORMATION section of the proposed rule, an Agency-regulated institution may comply with the § __.105(a) requirement in a number of ways. For example, the institution may choose to direct consumers to a listing of registered mortgage loan originators and their unique identifiers on its Web site; post this information prominently in a publicly accessible place, such as a branch office lobby or lending office reception area; and/or establish a process to ensure that institution personnel provide the unique identifier of a registered mortgage loan originator to consumers who request it from employees other than the mortgage loan originator. Furthermore, the Agencies intend § __.105(b)(3) of the rule to cover written communication from the originator specifically for his or her customers, such as a commitment letter, good faith estimate or disclosure statement, and not written materials or promotional items distributed by the Agency-regulated institution for general use by its customers. While, this provision does not require institutions to include the unique identifier on loan program descriptions, advertisements, business cards, stationary, notepads, and other similar materials, institutions are not prohibited from doing so. We also clarify that the requirement to provide the unique identifier to the consumer through the originator’s initial written communication, if any, applies whether that communication is provided in writing on paper or through electronic means. We have clarified this requirement in the final rule. The Agencies also clarify that the unique identifier may be provided orally, except pursuant to paragraph (b)(3) under which the unique identifier would be provided with the written or electronic communication.

So, there are no specific rules. These are suggestions.

Mike

We have also decided to put the NMLS ID # on business cards to be used before acting as an MLO but have had some debates on whether or not the business card can also meet the requirement to provide the number through the initial written communication. Does a business card constitute a written communication?

It depends on what you're asking IMO. I think a business card attached to the initial written communication with the consumer (be it a letter, ETIL, GFE, etc.) meets the requirement. I don't think however, that an MLO can give out their business card say at application with the thought that they are killing two birds with one stone, that is, that they have not only met the requirement to give before acting as an MLO but also in their first written communication. IMO, in any interaction between an MLO and a consumer that goes long enough for the MLO to have "acted as an MLO" and to have "an initial written communication with the consumer", the requirement to give out the unique identifier is triggered twice, not just once that can be satisfied with a business card.

How are you referring to the number on business cards or correspondence/disclosures to customers? For example, on a business card would you put the phrase "NMLS ID#" or "NMLS ID" followed by the number? Or, are you using the phrase "unique identifier" followed by the number? I did a google search and have seen some banks using "NMLSR ID" and some that use "NMLS ID." When I visited the NMLS consumer access web site and looked at their search tips, I see that they refer to NMLS ID or license. I think the reference should include NMLS in it.

We're using "NMLS ID #".

In regards to the Financial Institutions NMLS#; does it have to be on Fannie Mae and Freddie Mac loan applications as of July 29th, or is it just the MLO's # that needs to be on the application?

Freddie Mac wanted the MLO's identifier and the company's identifier on applications since July last year. This basically involved those entities that were subject to state licensing requirements. For institution's subject to federal registration, Freddie Mac wants the information on all applications received on or after 7/29/11. See this page on Freddie's web site.
http://www.freddiemac.com/sell/secmktg/new_details.htm

Need an opinion-We are a small bank with only 5 registered MLO's. I was thinking about having all 5 MLO's ID on a sheet attached with our mortgage application, a posting in the lobby with the info on all 5, and the same kind of sheet avaiable upon request. Does that seem to address the key points?:

1) Upon request;
2) Before acting as a mortgage loan originator; and
3) Through the originator’s initial written communication with a consumer, if any, whether on paper or electronically.

Would appreciate any feedback!

What about telephone applications and emails? For telephone applications, the loan officer should disclose their NMLS# before discussing/negotiating rates. For emails, I would just add the MLOs NMLS# to the signature line.

Unfortunately, i don't think a blanket "we supplied the MLO's # out in the lobby, that handles all 3 scenarios" will work. I think those 3 are all separate. Example: customer comes in to talk to LO and it becomes apparent that the customer wants to apply for a residential home loan. I think the requirements are for the LO to supply (orally, business card, etc.) the NMLS #. Later, same customer, (and totally theoretical), the customer calls back and says "hey...i don't remember your NMLS #...what was it again?"....the MLO needs to supply again. Then, the MLO sends off a letter (his first written correspondence with the borrower), stating approval. The NMLS # needs to be supplied again. That is how i see it anyway.

I missed the part about the MLO ID sheet on my first pass. But...if I understand what you're saying, i don't think that would change my response. And this is just my opinion of what the regulation means.

We don't take applications by telephone or internet, but I think I will add it on e-mail signatures since some of those first written communications are through e-mail.

I see what you are saying raitchjay...I may be over simplifying.

Don't forget to also put it in the signature on all letters or if they have personalized letterhead you could add it to the letterheard itself.

I have a slightly different scenario that I'd like your input on:

We work with a company that takes after hours calls for us, which sometimes include over-the-phone HELOC applications. However, the company is not a financial institution nor a mortgage broker and they will not be registering their employees with NMLS (citing prohibitive costs, etc.).

In light of S.A.F.E. Act requirements, they have obtained an opinion from an attorney re-stating the requirements of the Act. To be considerend an MLO, a person has to meet a two-prong test:
- Take an application; and,
- Negotiate the terms.

The company is saying that, as of the end of the month, they will only take the application and provide general information about the product, however, will not negotiate the terms of the loan - that way they do not meet the MLO definition. The "negotiation of the terms" would be done by our employees who are registered MLOs.

In my opinion, we would then not be compliant with the requirement to provide the NMLS ID number to the applicant before acting as an MLO (taking the application information from the third-party source and then negotiating the terms). The earliest the applicant would see any NMLS ID# would be with the early disclosures.

Does anyone see a way out of this or would we be better off discontinuing the HELOC application service through that company?

Question for you: what happens from the time you recieve the app from the third party until you send the earlies? Is there any further contact with the applicant or not?

Either way, while I am not a fan of such services, I would think that as long as you identified the MLO when you send out the earlies (i.e. business card, flyer, etc.), then you should be fine.

Jay, normally, the company's employee would gather the necessary information to complete the application and then send it all to us. At that point, the way I see it, we have "taken the application," which is the first step of acting as an MLO. My understanding is that the NMLS ID # should have been provided to the applicant before that. Or am I splitting hairs?

I am assuming that the third party is not quoting rates in this scenarios, and they are leaving that up to you folks.

I think it is important to keep in mind that it is a two prong test: both events have to occur or be occuring. Since the third party is simply gathering information and passing it onto you they have only satisifed one piece of it (of course the whole other arguement is from a customer experience side, and who is willing to give all the info for an app, but you cannot tell me my rate, or discuss rates? But that us an internal issue for you folks).

IMO, now that you have the info for the app, you will either reach out to your applicant to discuss it further, or you mail the earlies... either way you will most likely now be discussing rate, and thus be fully acting as an MLO, so then it is appropriate to either disclose verbally, and/or with the mailed communication.

There is a little gray area with this, but as long as you have documented procedures that you strictly adhere to, you should be fine. Also, don't be afraid to contact your lead examiner or area supervisor and get their take on it as well.

Yes, the third party is limiting their services so that they will not meet the second prong of the test - so they're in compliance.

It is the part where you say "fully acting as an MLO" that keeps nagging at me - SAFE Act doesn't seem to see it that way. "Taking the application" in itself is acting as an MLO, if you will follow it with "negotiation of the terms." No matter how I look at it, it seems that the applicants would be receiving the # later than intended.

I like your idea of contacting the examiners for clarification on this. It being the new program and me being responsible for it, I don't want any isuues,come exam time. Thank you, Jay!

While I do not disagree with your logic (as we know what our local business is) I do encourage you to always go back to the rule itself and review and understand how they define and structure, it and break it down. Good luck!

Just a wild hair thought i had: is there anyway this company can provide YOUR bank's NMLS information to these customers? Is there enough information early on such as which LO might be getting which application? Just a thought.

Thank you, raitchjay. I thought of that too, but somehow it doesn't feel right to allow a company whose employees we ultimately have no control over to use the numbers of our people. In the end, the NMLS ID# (granted we paid for it at this point) is the individual's number that will be tied to them for the rest of their career - very theoretically thinking, if the other company's employee messes something up, it can come back to haunt our employee whose number ends up on that application.

Also, while the final rule does not address it, I am thinking that the intent was not for unregistered people to use the numbers of registered ones...

I understand your concern, but on the other hand, these NMLS #s are required to be given upon request. My point is: by the way the regulation reads, if somebody at this company that takes applications for you met one of your LOs in the street and said "hey...what's your NMLS number?", technically, your LO would be required to give. I guess i'm saying i don't see these numbers as personal information that might be compromised if they fall into the wrong hands. The regulation seems to look at them as quite the opposite: give them upon request to anybody who asks for them. Again, just my opinion, but maybe something to think about.