Article By: Ben Giumarra, Spillane Consulting Associates, Inc.
You ask, we answer.
What happens when an loan originator’s NMLS number is valid at time of application, but becomes invalid for a period of time, possibly being reinstated by- or after closing? Our system is reporting this as a compliance error. We have an originator that allowed their NMLS license to lapse, so there will be a couple of days (maybe more) before we can get the fingerprints done and paperwork completed so as to get the NMLS number reinstated. In that window of time, this originator does not have a valid NMLS number.
This is a good question because similar things happen more than you think. Maybe a loan officer quits and goes somewhere else. Maybe they get suspended. Or maybe they go on vacation and another originator finishes the application.
- While suspended, loan originator cannot perform origination activities
- If disclosures are issued while suspended, a different loan originator must be disclosed because they cannot be the “primary” person
- If the loan originator’s license is suspended after a disclosure is made – it is not required to go back and reissue disclosures for that sole purpose
Here we go again? “Wall Street is livid over Wells Fargo’s latest scandal”
Very large non-depository quits the mortgage business – this storyexplains why. So interesting!