We have received several calls from clients who, based on investor bulletins and feedback, are asserting that the name and NMLS information which are required, under 12 CFR § 1026.36(g), to print on the promissory notes and security instruments should begin printing on them starting January 10th, regardless of when the loan was originated.
In our system, we have set up this information to print on applicable documents based on whether the application date of the loan is January 10, 2014 or later. This is based on the following clarification from the CFPB of when 12 CFR § 1026.36(g) would apply to loans:
“The Bureau is finalizing the effective date for the amendments to or additions of § 1026.36 . . . (g) . . . (and associated commentary) contained in the 2013 Loan Originator Compensation Final Rule and the proposed amendments and additions thereto in the June 2013 proposal, as proposed. Therefore . . . the effective date for the addition of § 1026.36(g) will be January 10, 2014 and that section therefore will apply to all transactions for which the creditor or loan originator organization received an application on or after that date.” (78 FR 60390; emphasis added)
Copies of this section of the Federal Register can be obtained here. In addition, the 2013 Loan Originator Rule – Small Entity Compliance Guide, which is published by the CFPB on their website also states the following:
“For the provision requiring the name and NMLSR ID of a loan originator organization, and an individual loan originator (as applicable), on loan documents, § 1026.36(g), you must start complying by January 10, 2014 with regard to any application received on or after that date.” (p. 16; emphasis added)
Since the CFPB has clearly indicated that this information need only appear on closing documents for loans applied for after today, we will continue to maintain our current setting and clients should expect to start seeing this information in their notes and instruments based on their loans’ application dates.