QUESTION: Do we have to disclose the loan officer’s NMLS ID on the promissory note for a HELOC?
ANSWER: While Regulation Z does have a specific requirement to include the NMLS ID on the promissory note, it excludes open-end credit which would include a HELOC:
“Scope.
Paragraphs (c)(1) and (2) of this section apply to closed-end consumer credit transactions secured by a consumer’s principal dwelling. Paragraph (c)(3) of this section applies to a consumer credit transaction secured by a dwelling. Paragraphs (d) through (i) of this section apply to closed-end consumer credit transactions secured by a dwelling. This section does not apply to a home equity line of credit subject to § 1026.40, except that paragraphs (h) and (i) of this section apply to such credit when secured by the consumer’s principal dwelling and paragraph (c)(3) applies to such credit when secured by a dwelling. Paragraphs (d) through (i) of this section do not apply to a loan that is secured by a consumer’s interest in a timeshare plan described in 11 U.S.C. 101(53D).”
§1026.36(b): http://www.consumerfinance.gov/eregulations/1026-36/2015-18239#1026-36-b
“(2) The loan documents that must include the names and NMLSR IDs pursuant to paragraph (g)(1) of this section are:
(i) The credit application;
(ii) The disclosures required by § 1026.19(e) and (f);
(iii) The note or loan contract; and
(iv) The security instrument.”
https://www.consumerfinance.gov/policy-compliance/rulemaking/regulations/1026/36/#g-2
Note, however, that HELOCs could still be subject to the SAFE Act, but it just requires disclosure of the NMLS ID in the following instances, which would likely not include the promissory note:
Ҥ1007.105 Use of unique identifier.
(a) The covered financial institution shall make the unique identifier(s) of its registered mortgage loan originator(s) available to consumers in a manner and method practicable to the institution.
(b) A registered mortgage loan originator shall provide his or her unique identifier to a consumer:
(1) Upon request;
(2) Before acting as a mortgage loan originator; and
(3) Through the originator’s initial written communication with a consumer, if any, whether on paper or electronically.”
https://www.ecfr.gov/cgi-bin/retrieveECFR?gp=&SID=4f8df8cfa0126753b8189c17ae0f2325&mc=true&n=pt12.8.1007&r=PART&ty=HTML#se12.8.1007_1105
As always, it’s important to also check internal policy and/or investment policy requirements as these can require additional disclosures beyond those in the regulations.
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