IBA Compliance Connection

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We are registering an employee as a mortgage loan originator (MLO) with the NMLS. He has worked for the bank for several years as a teller and is just now starting MLO duties. For purposes of filling out his employment history, should we use the first date of employment with the bank, or the first date of his MLO duties?

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We recommend entering the employee’s first day as a teller for purposes of the employment history on the employee’s NMLS profile.

The NMLS Guidebook states that a “full employment history” must be provided and that “no gaps should be present,” particularly for background check purposes. Consequently, we believe that the start date of employment should be the employee’s first day as a bank employee; otherwise, a gap would appear in the employee’s employment history. Also, we called the NMLS call center (866-665-7123) for informal guidance and were told that the preferred approach is to use the employee’s start date with the bank for purposes of the employment history, even if that date differs from the employee’s start date as a mortgage loan originator.

We note that your bank will be able to enter the employee’s start date as a mortgage loan originator elsewhere on the employee’s NMLS profile. Under “Federal Registrations,” your bank should enter the date on which the employee was “first authorized to represent” your bank as a mortgage loan originator. Consequently, this employee’s NMLS profile will show the employee’s first day as a teller and the employee’s first day as a mortgage loan originator, providing consumers using the NMLS system with a full picture of the employee’s relevant activities.

For resources related to our guidance, please see:

  • SAFE Act Regulations, 12 CFR 1007.103(d)(1)(ii) (Financial institutions must report a mortgage loan originator’s “financial services-related employment history for the 10 years prior to the date of registration or renewal, including the date the employee became an employee of the covered financial institution,” among other information.)
  • NMLS Policy Guidebook (July 23, 2012), page 52 (“Provide full employment history for the past 10 years. No gaps should be present. . . . . This is needed to verify required experience as well as to complete background checks in some states. All periods of unemployment must be accounted for. . . .”)
  • NMLS B2B Access Data Specification, pages 7–8 (The “Start Date” listed under “Federal Registration” (or “State Licenses/Registrations,” if applicable) is “the date that the individual was first authorized to represent this company.”)
  • NMLS FAQs, (“Q. What does “Authorized to Represent” mean? Most mortgage loan originators must be associated with a licensed/registered company in order to make mortgage loans. Such associated companies are listed under ‘Authorized to Represent.’ For information regarding companies an individual can make mortgage loans for under a particular license, view the ‘Authorized to Represent’ section under the license details for the desired license. Individuals licensed in states that only have mortgage loan originator licenses on NMLS will not have any companies listed under ‘Authorized to Represent.’ If an individual is federally registered, ‘Authorized to Represent’ means the individual has met all the requirements of a federal registration, and the institution displayed has confirmed employing that individual.”)