IBA Compliance Connection

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One of our mortgage loan originators recently left the bank. According to his NMLS record, he began working for a new employer a month before he left the bank — the NMLS shows a “start date” under “Office Locations” that is a month before his termination date with our institution. However, his NMLS record also shows a “start date” under “State Licenses/Registrations” that corresponds with his termination date. Which date should we treat as the employee’s termination date? How can we determine the exact date on which the employee’s NMLS identifier became registered with the new employer?

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While we cannot provide any legal advice or guidance on when the employee should be treated as terminated, the NMLS data entry guidelines may provide some clarification on what is meant by the two different “Start Dates.”

The “Start Date” entry under “Office Locations” is the employee’s first day of working at the location listed on the NMLS record. The “Start Date” entry under “State Licenses/Registrations” is the date on which the employee was “first authorized to represent the company.” There could be a number of explanations for the discrepancy between the two dates, and we recommend consulting with bank counsel when determining the employee’s termination date if it is in doubt. In particular, we recommend consulting with bank counsel if you believe that the employee breached an agreement with your institution by starting to work for another company while employed by your institution.

To determine when the employee’s NMLS identifier was transferred to the new employer, we recommend contacting NMLS directly, since the public portal of the NMLS does not provide the exact transfer date for an individual’s NMLS identifier.

For resources related to our guidance, please see:

  • NMLS B2B Access Data Specification, page 7 (The “Start Date” listed under “Office Locations” is “the date on which the individual first worked out of the location.”)
  • NMLS B2B Access Data Specification, page 8 (The “Start Date” listed under “State Licenses/Registrations” is “the date that the individual was first authorized to represent this company.”