Our Cx18212 (an “upon request” only document) was created in 2014 due to the creation of current 12 C.F.R. § 1026.36(g), which requires the name and NMLSR ID of both the “loan originator organization” and “individual loan originator . . . with primary responsibility for the origination” to appear on the credit application.
At the time, there was ambiguity in the industry as to whether this requirement applied equally to both a “loan originator organization” acting as a broker in a transaction and a “loan originator organization” acting as the lender in such a transaction. In other words, if there were two such entities involved in a transaction, should the NMLSR ID’s for one of the organization’s and their loan originator be disclosed (one pair of numbers) or should both (two pairs of numbers)?
The CFPB noted this ambiguity in their analysis to their rules which amended the effective dates of most of the subsections of Ibid. § 1026.36, as follows:
“While the Bureau is not changing the effective date for § 1026.36(g), it has become aware that some uncertainty exists with respect to the application of this provision where more than one loan originator organization is involved in originating the same transaction (e.g., a mortgage broker and a creditor performing origination services with respect to the same transaction). The Bureau understands that some loan originator organizations are planning to comply by including the name and Nationwide Mortgage Licensing System and Registry (NMLSR) ID (where the NMLSR has provided one) for multiple loan origination organizations involved in originating the transaction on the loan documents, while others are planning to comply by including the name and NMLSR ID (where the NMLSR has provided one) for just one of the loan originator organizations involved in originating the transaction on the loan documents. The Bureau believes that either approach complies with the rule in its current form. However, the Bureau is considering proposing to clarify at some point in the future that the name and NMLSR ID (where the NMLSR has provided one) for multiple loan originator organizations involved in originating the transactions must be included on the loan documents. If the Bureau ultimately adopts such a clarification, it will provide adequate time for compliance.” (78 FR 60382 )
Due to this, plus the fact that the proposed rules to TRID 1.0 (the final rules had not been published in the Federal Register yet) indicated that both pairs of numbers could appear on the LE and CD (see 77 FR 51321 & 51329 ), we decided to take a conservative approach and create an addendum to the URLA which would list up to two pairs of ID’s, since the version of the URLA then in effect (from 2009) only contains spaces for one pair of NMLSR ID’s (for details, see https://compliance.docutech.com/2013/12/31/january-2014-new-document-addendum-to-uniform-residential-loan-application-urla-cx18212/).
Since this time, the CFPB has not issued any clarification on this matter and the newest version of the URLA (expected to be released for use in 2020) still only contains spaces for disclosing one pair of ID’s.
Because the CFPB has already stated that both methods are acceptable for compliance and FHFA (implicitly) determined that a disclosure of two pairs of ID’s is necessary, we will no longer support Cx18212 as a generic document and it will no longer be maintained for compliance. This document has always been available “upon request” and will continue to print for those clients who currently print Cx18212 under their custom document print configuration settings.
Generic support for Cx18212 is discontinued, effective immediately. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.