When a title insurance agent acts as a settlement agent for a residential mortgage closing, we have been tracking down and using their Illinois title insurance registration number in lieu of an NMLS number on the Closing Disclosure. Is this still correct?

Yes, we believe it is still true that when a settlement or closing agent is a registered title insurance agent, the Closing Disclosure should display the agent’s Illinois title insurance registration number.

Regulation Z’s requirements for the Closing Disclosure include the disclosure of “a license number or unique identifier for each person (including natural persons) identified in the table who does not have a NMLSR ID if the applicable State, locality, or other regulatory body with responsibility for licensing and/or registering such person’s business activities has issued a license number or other unique identifier to such person . . . .”

In Illinois, title insurance agents are not required to obtain an NMLS number, but they are required to obtain a unique registration number from the Illinois Department of Financial and Professional Regulation (IDFPR). The IDFPR has issued a notice to clarify that the CFPB mortgage disclosures should display a title agent’s registration number: “In order to avoid confusion with the requirements of the Consumer Financial Protection Bureau (CFPB), title insurance agents in Illinois are not issued ‘license’ numbers. Such agents are ‘registered’ and are given a registration number. Please use the registration number in order to comply with the ‘license’ requirements of the CFPB.”

For resources related to our guidance, please see:

Regulation Z, 12 CFR 1026.38(r)(3) (“Nationwide Mortgage Licensing System & Registry (NMLSR ID) identification number, labeled ‘NMLS ID,’ or, if none, license number or other unique identifier issued by the applicable jurisdiction or regulating body with which the person is licensed and/or registered, labeled “License ID,” with the abbreviation for the State of the applicable jurisdiction or regulatory body stated before the word “License” in the label, for the persons identified in paragraph (r)(1) of this section”)

Official Interpretations, Regulation Z, 12 CFR 1026, Paragraph 38(r), Comment 5 (“Section 1026.38(r)(3) and (5) requires the disclosure of a license number or unique identifier for each person (including natural persons) identified in the table who does not have a NMLSR ID if the applicable State, locality, or other regulatory body with responsibility for licensing and/or registering such person’s business activities has issued a license number or other unique identifier to such person under § 1026.38(r)(3) and (5). . . .”)

Illinois Title Insurance Act, 215 ILCS 155/16(a) (“No person, firm, partnership, association, corporation or other legal entity shall act as or hold itself out to be a title insurance agent unless duly registered by a title insurance company with the Secretary.”)

IDFPR Title Insurance CFPB Notice (“In order to avoid confusion with the requirements of the Consumer Financial Protection Bureau (CFPB), title insurance agents in Illinois are not issued ‘license’ numbers. Such agents are ‘registered’ and are given a registration number. Please use the registration number in order to comply with the ‘license’ requirements of the CFPB.”)