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“You do not have to collect the above information for any individual hired before January 10, 2014, if you screened the individual under statutory or regulatory standards that were in effect at the time of hire.”
This quote is from p. 58 of the CFPB’s guide concerning LO compensation and qualification. It is referring to the credit report, background check, and information about criminal and other regulatory action. Does this mean if we qualified them under the SAFE act, (not necessarily at the time of hire, but when the SAFE act was put into effect or at the time of hire) that we do not have to do anything else? As I was reading it, it sounded to me like we wouldn’t need a credit report (the only requirement for LOs that is not a requirement for MLOs as far as screening is concerned) since we qualified them under other standards? If this is the case, would the same be true for an LO who is not an MLO but for whom we were required to do a background check on at the time of hire just because it was our policy?You are correct. And reason would indicate that you wouldn’t have to do a background check if one had already been done at the time of hire. However, the regulation or commentary doesn’t seem to give an exception for this. Take a look at page 367 and 368 of the final rule: https://files.consumerfinance.gov/f/201301_cfpb_final-rule_loan-originator-compensation-preamble.pdf
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