Where Should the Mortgage Loan Originator Identification Number Appear Under the New Regulation Z Rules?

Under the Regulation Z requirements which went into effect on January 10, 2014, on what loan documents should the unique identifier issued by the National Mortgage Licensing System and Registry for loan originators appear for a loan made by a bank?

Under the requirements of Regulation Z which went into effect on January 10, 2014, the names of the loan originator organization and individual loan originator and the unique identifier numbers assigned to them by the National Mortgage Licensing System and Registry (“NMLSR ID”) must appear on the following documents for a closed-end consumer credit transaction secured by a dwelling:

• The credit application;
• The note or loan contract;
• The security instrument.

This information must appear whenever such a document is provided to a customer or presented to a customer for signature 12 CFR 1026.36(g)(1),(2).

It is not necessary for the information to appear more than once on each document. Official Interpretations, 36(g)(1)-3.

If there is more than one individual loan originator, the name and NMLSR ID to be added is that of the individual  loan originator who has primary responsibility for the transaction at the time the loan document is issued. It is not necessary for the information to appear more than once on each document. Official Interpretations, 36(g)(1)(ii)-1.

Under Title XIV, Section 1402 of the Dodd-Frank Act, the NMLSR ID must appear on “all documents” of such a transaction. Some financial institutions will provide it on the documents named above and on other forms disclosing loan terms, such as the Good Faith Estimate of Settlement Costs, early Truth-in-Lending disclosures, and HUD-1/1A Settlement Statement. The Bureau of Consumer Financial Protection has indicated that it has no objection to loan originator names and NMLSR IDs being included on current forms where not required, but it will require such information to appear only on the documents named in section 1026.36(g)(2) of Regulation Z until its 2012 TILA-RESPA Integration Proposal is implemented. 12 CFR Part 1026, Docket No. CFPB-2012-0037.

In addition, under the continuing rules of 12 CFR Part X, giving effect to the S.A.F.E. Act, the unique identifier of the mortgage loan originator must be provided to a consumer:

• Upon request;
• Before the mortgage loan originator acts as a mortgage loan originator;
• Through the mortgage loan originator’s initial written communication with a consumer, whether on paper or  electronically. 12 CFR 1007.105.

This entry was posted on Monday, February 3rd, 2014 at 3:30 pm.