The FDIC recently indicated that it’s still seeing banks without written policies and procedures for compliance with the Loan Originator Compensation Rule under §1026.36. This section requires written policies and procedures to help ensure compliance with the following items:
• Loan Originator Compensation restrictions;
• Steering Prohibitions;
• Loan Originator Qualification Requirements; and,
• Loan Originator Name and NMLS ID Disclosure requirements.
We want to remind you that every bank needs written policies and procedures for these requirements. Some may be fairly short and to the point while others may be more complex. If you’re looking for a place to start, you can find sample templates on our Free Downloads page.
This section also requires banks to provide Loan Originator names and NMLS ID #’s on certain documents for closed-end loans secured by a dwelling. The FDIC stated this is another requirement banks are missing. Currently, the names and NMLS ID#’s of the individual Loan Originator as well as the Loan Originator Organization must be provided on the following:
• Security Document; and,
• Integrated Disclosures (beginning August 1, 2015)
Now would be a good time to make sure you’re in line with these requirements before you next exam.
Diane joined Banker’s Compliance Consulting with over 10 years of compliance experience and over 15 years of experience within the financial industry. Diane is a Certified Regulatory Compliance Manager (CRCM) and has a Bachelor’s Degree in Sociology with a concentration in Criminal Justice. She is a graduate of the Schools of Banking Compliance School and has participated in various other training opportunities throughout her career. Diane understands firsthand the struggles banks face in building and maintaining successful compliance programs. Her experience and common sense approach to consumer compliance is a great asset to our clients.
Diane and her husband have two kids who keep them busy. She enjoys running and other sports and is a big Bugs Bunny fan! She’s a bit crazy in that she does enjoy reading some of these regulations and she’s a “crazy cat lady!” Her cat tales are hilarious!