We recently received release notes from our loan originating system and in the changes for the NMLS being added to more documents they also stated that “The CFPB amended Regulation Z to require that the name, exactly as it appears in the NMLS, and the NMLS #” to be put on these other documents. What is confusing me is the name…does it have to be their full legal names…or is it okay as long as it is one of their other names we have listed? Just asking because we have several loan officers that go by their middle names, no one would know them by their first name.
1026.36(g)(1)(ii) states: Name and NMLSR ID on loan documents. (1) For a consumer credit transaction secured by a dwelling, a loan originator organization must include on the loan documents described in paragraph (g)(2) of this section, whenever each such loan document is provided to a consumer or presented to a consumer for signature, as applicable:
(i) Its name and NMLSR ID, if the NMLSR has provided it an NMLSR ID; and
(ii) The name of the individual loan originator (as the name appears in the NMLSR) with primary responsibility for the origination and, if the NMLSR has provided such person an NMLSR ID, that NMLSR ID.
There isn’t anything in the preamble or the commentary that discusses legal names vs. aliases. I think the conservative approach would be to use the name as it is listed in the NMLS, but if the MLO goes by an alias that is included in their registered information I think you could make the argument for using that as well.