When I conducted the independent audit for SAFE Act at year-end, I reported a finding that is still outstanding. One of our MLOs changed her name sometime during the reporting yet but did not update her profile during the renewal period in November. The SAFE Act officer was aware of the name change but not the responsibility to update the information in the registry within 30 days. That aside, we have asked for the legal documentation and have not received it. What kind of repercussions and/or disciplinary action should be taken?

Kill them all and burn their villages!

Seriously though. In my experience repercussions and disciplinary action are not the best way to get results from findings. You need to look at why things are not being addressed and get buy in from the top to fix it. If you're resorting to punishments, then you've already lost the battle.

What repercussions are you even able to dole out if a simple documentation request is being ignored?

The compliance management piece has been resolved, e.g. new administrator, new MLO, etc. As to further action, management considered suspending her registration because she's dragging her feet, but I was more concerned with potential disciplinary actions in the ACT and whether this type of outstanding issue rises to the level of something more serious than a violation.

It's a technical violation, but the only time I've seen a name change be an issue is if you're selling the loan on the secondary market, as they will likely make sure the officer name matches the NMLS registry.

I would send the MLO an email along with the quick guide to updating their MU4R and ask for them to update their name or add an AKA by a certain date. If it's not done by that date, start adding management to the emails, as that can spur some action.

Rather than traditional disciplinary action, like verbal or written warnings, I would inform them that we will shut off their access to the loan origination software until their NMLS profile is updated appropriately. If that doesn't get them to act, nothing will.

HOWEVER - make sure they aren't out on FMLA or other extended leave, as that happened to me once and it was a bit embarrassing....

I'm usually a more of a "catch flies with honey" type, but how long does it take to make this profile update in the system? If I have a finding not getting a response and it takes less than an hour to make the correction, I would schedule a meeting. Then once you have a dedicated hour of their time, that's when they get it done while you awkwardly watch.

(They usually get it done before that meeting)