Join us on LinkedIn Follow us on Twitter Like us on Facebook Follow us on Instagram
 
  OCTOBER RESEARCH STORE Already a subscriber? LOG IN
AddControlToContainer_DynamicNavigation6

States offer work from home relief for MLOs

Email A Friend Printer Friendly Version
1 comments
Banking
Tuesday, March 17, 2020
As business processes have changed in the past week, with federal and state health officials issuing guidance and orders concerning public health, a number of mortgage loan officers have been asked to work from home or the process is being considered.

Many states have different rules on allowing loan officers to work from home when their home is not considered a branch office under regulations. But state banking and financial institution regulators have issued guidance in the past week or more on how to comply with standards and while working from home.

The Conference of State Bank Supervisors aggregated guidance information from state regulators here.

Among the areas issuing guidance is the Washington Department of Financial Institutions after the governor issued an emergency proclamation.

“Because the Washington State Department of Health has confirmed the localized person-to-person spread of the virus, licensed mortgage origination companies may wish to take precautions to further avoid the risk of exposure by having employees work at home,” the guidance states. “This includes mortgage loan originators, who are otherwise required to only work from licensed locations.”

Thus, the department issued interim guidance to temporarily allow licensed mortgage loan originators (MLO) to work from home, whether they are in the state or not, even if the home is not a licensed branch.

“If the data security provisions set forth below are met, the department will not take administrative or other punitive action against a licensed mortgage loan originator or the sponsoring licensed company if the mortgage loan originator conducts activities requiring licensure from home,” the guidance states.

The data security provisions are:

  1. The licensed mortgage loan originator must be able to access the company’s secure origination system (including a cloud-based system) directly from any out-of-office device the mortgage loan originator uses (laptop, phone, desktop computer, tablet, etc.) using a virtual private network or similar system that requires passwords or other forms of authentication to access.
  2. All security updates, patches, or other alterations to the devices security must be maintained.
  3. The licensed mortgage loan originator must not keep any physical business records at any location other than the licensed main office.

“While it is up to the company and the MLO to decide whether consumers go to MLO licensed branch homes, if MLOs work from an unlicensed branch home, they must not have consumers come to the home,” the guidance concluded.

The Montana Division of Banking and Financial Institutions issued guidance covering loan officers in its state.

“Due to the health risk associated with COVID-19, the division is temporarily allowing licensed mortgage loan originators to work from home, whether located in Montana or another state, even if the home is not a licensed branch,” the guidance states. “All other provisions of the Montana Mortgage Act remain in place.

“While it is up to the company and the MLO to decide whether consumers go to MLO licensed branch homes, if MLOs work from an unlicensed branch home, they must not have consumers come to the home.”

The Kansas Office of the State Bank Commissioner (OSBC) issued guidance which included security provisions such as the ones issued by Washington.

“K.S.A. 9-2203(a) requires that mortgage business in the state of Kansas shall only be conducted from a licensed main office or branch office. However, the OSBC recognizes that mortgage loan originators may be asked to work remotely from their residence or another company-designated location to help prevent the spread of COVID-19, even though such location is not currently licensed as a branch office,” the guidance states. “For compliance purposes, the OSBC will respect the decision made by the company to temporarily modify work assignments, including Kansas licensed MLOs working remotely, to reduce the risk of exposure or transmission of COVID-19 during this state of emergency. Prospective or existing consumer borrowers should not travel to an MLO’s residence to conduct business.”

The guidance included best practices for remote workers to ensure their information was secure while out of the office:

  • Computers and devices that leave the office should include at-rest encryption.
  • Paper records should not be taken off-site if they contain confidential information.
  • Connectivity to the main office or sensitive systems should be encrypted in transit by use of a virtual private network or similar technology.
  • Activity should be conducted in a private home environment, avoiding public areas such as coffee shops or libraries.

Mississippi provided another example, as the Department of Banking and Consumer Finance (DBCF) issued interim guidance regarding its intent to temporarily allow MLOs to work from home.

“If the data security provisions set forth below are met, the DBCF will not take administrative or other punitive action against a licensed mortgage loan originator or the sponsoring licensed company if the mortgage loan originator conducts activities requiring licensure from home,” the guidance states.

“The following data security requirements must be met to ensure the secure transmission and storage of consumer data during this interim period:

  • The licensed mortgage loan originator must be able to access the company’s secure origination system (including a cloud-based system) directly from any out-of-office device the mortgage loan originator uses (laptop, phone, desktop computer, tablet, etc.) using a virtual private network or similar system that requires passwords or a multi-authentication process.
  • All security updates, patches, or other alterations to the devices must be maintained.
  • The licensed mortgage loan originator must not keep any physical business records at any location other than the secure file location listed in NMLS.”

The guidance concluded by stating if MLOs chose to work from an unlicensed branch home, they shall not have consumers come to them.

Today's other top stories
Powell testifies to Congress about trade policy impacts on interest rates
CFPB outlines new approach to criminal enforcement referrals
How changing consumer behavior has led to a ‘new normal’ in credit scoring
Banking agencies seek feedback on capital standards revisions
Trades signal support for modernized payments, bond programs


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
Please enter a comment.
CAPTCHA Validation
CAPTCHA
Code:
Please enter the word displayed in the image above. Please enter the word displayed in the image above.
: 
Please enter your name.
: 
Please enter your email address.
This field must contain a valid email address.
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 38801 times.

Monthly Newsletter

Dodd Frank Update July 2025

Cover Story:

Former CFPB attorneys say state CFPA rights are for the courts to decide


News by Topic   News by Edition   News by Agency   News by Industry   In-depth Reports   Events
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
 
Dodd Frank Update June 2025
Dodd Frank Update July 2025
Archives
 
CFPB NCUA
CFTC OCC
FDIC OFR
FHFA SEC
FRB States
FSOC Treasury
FTC  
 
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
 
2025 State of the Industry
CRA and Affordable Housing
2025 State of the Industry
Who's My Regulator?
Fair Lending
Mortgage Technology
Marketing Compliance for Lenders
Archives
 
National Settlement Services Summit (NS3)
Women's Leadership Summit (WLS)
Webinars

Library   About   Subscribe   Other Publications
Data Privacy Vault Court Actions
Keys to Real Estate podcast Enforcement Documents
Blog - Tuesdays with Mary Guidance Documents
1071 Compliance Guide White Papers
eClosing Solutions Showcase Position Papers
Executive Interview Series Legislation
Lender Associations Regulations
The Dodd-Frank Act Reports, Studies and Surveys
Dodd-Frank Summary & History Federal Register Notices
 
Dodd Frank Update
Contact / Editors
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement
 
Subscriptions
Free Email Updates
Try a Free Edition
 
The Title Report
The Legal Description
Valuation Review
RESPA News
Copyright © 2011-2025 Dodd Frank Update
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.doddfrankupdate.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> The Legal Description
> RESPA News
> The Title Report
> Valuation Review
> NS3 The Summit
> Women's Leadership Summit
> October Research, LLC
> The October Store


Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
NEWS BY TOPIC
EDITION
AGENCY
IN-DEPTH REPORTS
INDUSTRY
EVENTS
LIBRARY
EMAIL UPDATES
ABOUT
SUBSCRIBE
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
Current Edition
June 2025
May 2025
April 2025
Archives
CFPB
CFTC
FDIC
FHFA
FRB
FSOC
NCUA
OCC
OFR
SEC
States
Treasury
2025 State of the Industry
Real Estate Compliance Outlook
CRA and Affordable Housing report
Who's My Regulator?
Fair Lending
Marketing Compliance for Lenders
Archives
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
National Settlement
Services Summit (NS3)
Women's Leadership
Summit (WLS)
Webinars
2025 Economic Outlook Series
CFPB's Shake-Up & Its Impact on You
Data Privacy Compliance
Fintech Partner Compliance
Strategies post-NAR settlement
Industry and Regulatory Outlook
Securing Your Cyber Network
Compliant Marketing Tactics
2024 Economic Forecast Series
Webinar Archives
Data Privacy Vault
Keys to Real Estate podcast
Blog - Tuesdays with Mary
1071 Compliance Guide
eClosing Solutions Showcase
Executive Interview Series
Lender Associations
The Dodd-Frank Act
Dodd-Frank Summary
Court Actions
Enforcement Documents
Guidance Documents
White Papers
Position Papers
Legislation
Regulations
Reports, Studies and Surveys
Federal Register Notices
Proposals
Final Rules
GAO
Agency
Contact Us
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement