From time to time, the NAFCU Compliance Team receives questions regarding the requirement in Regulation G, issued pursuant to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act), to disclose or make available to consumers the Nationwide Mortgage Licensing System & Registry (NMLS) IDs (unique identifiers) of their mortgage loan originators. An NMLS ID is a number assigned by the NMLS to “facilitate electronic tracking and uniform identification of loan originators and public access to the employment history of, and the publicly adjudicated disciplinary and enforcement actions against, loan originators.” See, 12 USC 5107(c).
Disclosure Requirements in Regulation G. Section 1007.105 of Regulation G requires credit unions to make available to consumers the unique identifiers of registered mortgage loan originators. For the purposes of the act, a mortgage loan originator is an individual who “takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain”. A residential mortgage loan is “any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling (as defined in section 103(v) of the Truth in Lending Act, 15 USC 1602(v)) or residential real estate upon which is constructed or intended to be constructed a dwelling, and includes refinancings, reverse mortgages, home equity lines of credit and other first and additional lien loans that meet the qualifications listed in this definition.” See, 12 CFR §1007.102 (2)(C)(ii)(1).
Credit unions are required to provide the NMLS IDs to consumers “(1) upon request, (2) before acting as a mortgage loan originator; and (3) through the originator’s initial written communication with a consumer, whether on paper or electronically”. See, 12 CFR § 1007.105 (b). These requirements apply whether the communication is provided in writing on paper or through electronic means.
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