[Angie Cowell]

We would like to talk through the contact information for the Settlement Agent. In KY we have Title Agencies that will close our loans. For the Title Agency we are putting the number issued by the secretary of state as they are not issued a license number. We then have to list an individual contact and a number if they have one. Does the contact have to be who is closing the loan or just a general contact at the office? We are getting some push back on two things, title agency is telling us they do not know who will be closing loan until time of closing which creates an issue of who to list. Also, if the person closing the loan is an attorney and has a license number should we be listing that number, push back from them is even though they are licensed they are not practicing law for the title agency? I have attached the reg and commentary regarding this section below.

1026.38 (r )

(r) Contact information. In a separate table, under the heading “Contact Information,” the following information for each creditor (under the subheading “Lender”), mortgage broker (under the subheading “Mortgage Broker”), consumer’s real estate broker (under the subheading “Real Estate Broker (B)”), seller’s real estate broker (under the subheading “Real Estate Broker(s)”), and settlement agent (under the subheading “Settlement Agent”) participating in the transaction:
(5) NMLSR ID, labeled “Contact NMLS ID,” or, if none, license number or other unique identifier issued by the applicable jurisdiction or regulating body with which the person is licensed and/or registered, labeled “Contact License ID,” with the abbreviation for the State of the applicable jurisdiction or regulatory body stated before the word “License” in the label, for the natural person identified in paragraph (r)(4) of this section,

1026.38 (r )(5) Commentary

5. License number or unique identifier. Section 1026.38(r)(3) and (5) requires the disclosure of a license number or unique identifier for each person (including natural persons) identified in the table who does not have a NMLSR ID if the applicable State, locality, or other regulatory body with responsibility for licensing and/or registering such person’s business activities has issued a license number or other unique identifier to such person under § 1026.38(r)(3) and (5). The space in the table is left blank for the disclosures in the columns corresponding to persons who are not subject to the issuance of such a license number or unique identifier to be disclosed under § 1026.38(r)(3) and (5); provided that, the creditor or settlement agent may omit the column from the table or, if necessary, replace the column with the contact information for an additional person. See comment 38(r)-1. In addition, under § 1026.38(r)(3) and (5), the abbreviation of the State or the jurisdiction or regulatory body that issued such license or registration is required to be included before the word “License” in the label required by § 1026.37(r)(3) and (5). If no such license or registration is required to be disclosed, such as if an NMLSR number is disclosed, the space provided for such an abbreviation in form H-25 of appendix H to this part may be left blank. A creditor complies with the requirements of § 1026.38(r)(3) and (5) to disclose the abbreviation of the State by disclosing a U.S. Postal Service State abbreviation, if applicable.

Topic

[rcooper]

I don’t think I can say definitively that is will always be the person closing the loan or that it can always be someone else. You ma have seen it already, but comment 1026.38(r)-6 gives some good guidance. In addition, below is a discussion from the preamble. If you have additional questions after reviewing this please let us know.

p. 1175 Similarly, proposed comment 38(r)-6 would have clarified that the primary contact working at the identified party is the individual who interacts most frequently with the consumer and who has an NMLSR identification number or, if none, a license number, or other unique identifier to be disclosed under proposed § 1026.38(r)(3) and (5), as applicable, and provides examples of the primary contact to be disclosed in a given transaction.

p. 1176 A large bank also requested guidance on whether the primary contact for the creditor must be the loan originator’s name or whether the creditor may designate any individual as its contact.

p. 1177 Regarding the request for guidance on whether a creditor may designate any individual as a contact for the consumer, § 1026.38(r)(4) would have required disclosure of the name of the natural person who is the primary contact for the consumer which, in the case of the creditor is likely to be the loan originator. Section 38(r)(4) would not have permitted designation of a natural person completely unrelated to the consumer’s transaction as the primary contact for the consumer in all instances but there may be situations where, depending on the facts and circumstances, the primary contact for the consumer is not the loan originator.

[Author]

Replies