Reply To: NMLS – MLO Registration


There isn’t anything in the SAFE Act that suggests there would be any restrictions with the MLO changing jobs and registering with a new employer, even if loans are in progress with the current employer. I recommend, if there are loans in progress, the NMLS ID number of the MLO taking over/closing the loans be used where required on any remaining/closing documents. Either way, if there is a new MLO or if there is a loan originator who meets the de minimis exception in the SAFE Act closing the loan, I would recommend a nice letter to the applicant(s) informing them of their new MLO and include his/her NMLS #, if applicable. This would show a good faith attempt to inform the borrower(s) whom they are dealing with, which goes to the intent of the law (and be sure to keep a copy in the loan file).

Below is an excerpt from

Regulation Z Official Staff Interpretations, Paragraph 36(g)(1)(ii).
This is effective 1-10-14. I think it follows the same line of thought, that there could be two different loan originators during the course of the loan, disclosing the applicable NMLS # at the time.
1. Multiple individual loan originators. If more than one individual meets the definition of a loan originator for a transaction, the name and NMLSR ID of the individual loan originator with primary responsibility for the transaction at the time the loan document is issued must be included. A loan originator organization that establishes and follows a reasonable, written policy for determining which individual loan originator has primary responsibility for the transaction at the time the document is issued complies with the requirement. If the individual loan originator with primary responsibility for a transaction at the time a document is issued is not the same individual loan originator who had primary responsibility for the transaction at the time that a previously issued document was issued, the previously issued document is not required to be reissued merely to change a loan originator name and NMLSR ID.

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