form change overview april 2012 - nmls resource center · new business activity wizard – add...

April 30, 2012 Page1

APPROVED NMLS FORM CHANGES FOR IMPLEMENTATION ON APRIL 16, 2012

State Regulatory Registry LLC 1129 20th Street NW, Ninth Floor Washington, D.C. 20036-4307


Purpose of MU Forms

The MU Forms create a national standard of information collection for mortgage company, branch, and individual licensure. The MU Forms are intended to provide state mortgage regulators with sufficient information to make a decision to approve a new license, continue a license authority, or approve a license renewal request while at the same time driving greater transparency and uniformity across NMLS Participating regulatory jurisdictions.

Background

On a biennial basis, the NMLS Mortgage Licensing Policy Committee (MLPC) undertakes a review of the MU Forms after receiving public comment. The purpose is to update the forms to provide better information to state regulators and to make improvements in the use of the system to support these changes.

During the Spring of 2011, the Board of Managers of the State Regulatory Registry LLC, upon the advice of the NMLS Prioritization Task Force, confirmed the decisions to make changes to the MU Forms and the NMLS to support state agency use of the system for non-depository industries beyond mortgage.

This document is intended to be a comprehensive listing of the changes proposed by state regulators to meet both of these goals: updating the MU Forms and expanding NMLS’ capabilities to accommodate the management of additional non-depository license types.

The following is a comprehensive outline of the changes effective April 16, 2012 that have resulted from the work of the following working groups:

MU Forms WG

Money Services Business WG

Debt Management Company WG

Consumer Finance Lending WG

Request for Public Comments

On January 24, 2011, the State Regulatory Registry LLC (SRR), on behalf of the state regulatory agencies using NMLS, invited comments from the public, including licensees and regulatory agencies, on the content of the MU Forms, as represented in NMLS. Comments were requested for three distinct areas:


1. Based on experience in using the MU Forms over the past several years, input was sought with regards to improving the questions and content of the forms so as to better achieve the above stated purposes.

2. Input was sought how the NMLS Policy Guidebook can be amended to improve the content, clarity and consistent use of NMLS across participating regulatory agencies.

3. Input was sought how the MU Forms can be amended to facilitate the incorporation of additional non-depository license types into NMLS in a streamlined process.

SRR received comments from 16 individuals or organizations during the comment period. A list of the comments received can be found on the NMLS Resource Center.

All suggestions were reviewed by the MU Forms Working Group and discussed on conference calls open to all state mortgage regulators. Proposed changes were reviewed by the Industry Development Working Group, the SRR Mortgage Advisory Council and draft changes were posted on the NMLS Resource Center starting in November 2011. The MU Form Working Group’s recommendations were approved by the SRR Mortgage Licensing Policy Committee. The members of the MU Forms Working Group were:

REPRESENTATIVE AGENCY

Mike Cameron – Chair Nebraska Department of Banking and Finance

Kirsten Anderson Oregon Division of Finance and Corporate Securities

Tracy Hudson West Virginia Division of Banking

Sandra Knau California Department of Real Estate

Greg Oaks Florida Office of Financial Regulation

Greg Short Massachusetts Division of Banks

Implementation of Changes

The Form changes will be implemented on April 16, 2012 and licensees will have to complete new sections of the form when they make a new filing.

Licensees that currently have any ‘Yes’ answers to disclosure questions will be required to provide a disclosure explanation in order to submit an amended filing.


New and existing users to NMLS should become familiar with the changes to the various sections of the Forms and update their record as necessary or as required by their state regulator.

The approved changes to the Forms described below will be implemented in the system, paper company, branch and individual Forms, and NMLS Policy Guidebook in April 2012.

Company Form (MU1) Changes:

List of Changes

Changes will be made to the following sections of the Company Form (MU1):

New Business Activity Wizard – Add ability for users to indicate the types of business activities they conduct.

Updates to Current License Wizard – Updates to the steps to request, surrender, withdraw, and maintain a license.

Identifying Information – Addition of copy button to allow main address to

be copied in the mailing address field.

Other Trade Names – Add ability to associate industry types to each trade name provided.

Web Addresses – Add ability for users to identify if they are accepting

applications or transacting business through the website provided.

Contact Employees – Add ability for users to designate a primary company contact and primary consumer complaint contact. Companies can also designate the industry types and states that non-primary contact employees participate in.

Books and Records Information – Add ability for users to select an industry

type associated with each books and records location. Approvals and Designations – New section added to collect information

regarding the company’s approvals and designations previously collected in the Other Business section.

Bank Accounts – New section added to collect bank account information for

the license they are applying for (only if required by the state regulator).


Other Business – The Other Business section was removed and the information previously provided on this page will be collected in other sections of the form (Business Activity Wizard and Approvals and Designations).

Disclosure Questions – Text updates made to disclosure questions.

Disclosure Explanations – Add the ability for users to provide an

explanation and upload supporting legal documentation for any disclosure questions answered “yes”.

Qualifying Individuals – Add functionality for a qualifying individual to be

provided for each industry type the company is associated with.

Document Upload – Add ability for users to upload defined document types within NMLS.

Jurisdiction Participation – This section was removed from the form. View more details regarding changes to the Company (MU1) Form.

Branch Form (MU3) Changes:

List of Changes

Changes will be made to the following sections of the Branch Form (MU3):

New Business Activity Wizard – Add ability for users to indicate the types of business activities they conduct.

Updates to Current License Wizard – Updates to the steps to request, surrender, withdraw, and maintain a license.

Other Trade Names – Add ability to associate industry types to each trade

name provided.

Branch Manager – Add functionality for a single branch manager to be provided for each industry type the company conducts business activities in.

Web Addresses – Add ability for users to identify if they are accepting

applications or transacting business through the website provided.

Books and Records – Add ability for users to select an industry type associated with each books and records location.


Document Uploads – Add the ability for users to upload defined document types within NMLS.

Jurisdiction Participation – This section was removed from the form. View more details regarding changes to the Branch (MU3) Form.

Individual Form (MU2) and Individual Licensing Form (MU4) Changes:

List of Changes

Changes will be made to the following sections of the Individual Form (MU2) and Individual Licensing Form (MU4):

Identifying Information – Add ability for users to provide Government Issued Identification and Passport information fields (only if required by state regulator). Separate Extension field provided for Business Phone.

Disclosure Questions – Updates made to existing disclosure questions and new questions added.

Disclosure Explanations – Add the ability for users to provide an explanation and upload supporting legal documentation for any disclosure questions answered “yes”.

Jurisdiction Participation – This section was removed from the form. View more details regarding changes to the Individual (MU2/MU4) Form.

Definition/Glossary Changes

References throughout NMLS and the NMLS Policy Guidebook to the term “mortgage” will be changed to “financial-services” to better represent the broader license authorities managed on NMLS.


COMPANY FORM (MU1) CHANGES

NEW BUSINESS ACTIVITY WIZARD

The Business Activities section is new with the 2012.2 release. New and existing companies will be required to identify the business activities they conduct prior to submitting a filing. By clicking Add Activity users will be taken through the business activity wizard. This will allow users to select the business activities that they perform and designate in which state those activities are performed. By clicking Add State users will be able to select additional states to associate with existing business activities. From this screen users will also be able to remove a state from a business activity as well as remove a business activity all together.

Going forward, if a company needs to transition or request a new company license they must first verify that they have added the corresponding business activity. The business activities section will be required for all filings. Companies amending their record for the first time on or after April 16, 2012 will be required to select the relevant business activities, even if they are not requesting a new license.

By allowing the companies to select the state(s) relevant to the business activity, the need for the jurisdiction participation section is eliminated.


Below are the business activities the entity will be able to select.


Once the activities and state(s) have been selected, the user will be able to choose which action they need to take next.

UPDATES TO CURRENT LICENSE WIZARD

The Request/Transition License(s) section listed in the left navigation panel as Request License is new with the 2012.2 release. The goal is to make requesting a license more streamline by taking users directly into the license wizard. The licenses presented on this page are available licenses based on the business activity and state selections made in the business activities section. This also streamlines the process to transition an existing license because users can select licenses and provide existing license numbers on a single page.


After a new license and/or transition request has been entered, users will be taken to a confirmation screen with additional buttons to help users navigate throughout the filing.

LICENSE/REGISTRATION INFORMATION

The information contained on this screen was not changed. However, new buttons were added at the top of the page to allow users to easily navigate through the filing.

IDENTIFYING INFORMATION


On the Identifying information screen, a copy button was added to allow users to copy the main address to the mailing address fields when applicable. The mailing address fields are now required; users will receive a completeness check error if not provided.


OTHER TRADE NAMES

Users will now have to associate other trade names with one or more industry types. When amending a filing that contains Other Trade Names, users will receive a completeness check error if this association is not made. In addition, the jurisdiction listing was changed to a state listing.


RESIDENT/REGISTERED AGENT

No changes made to this section.

WEB ADDRESSES

Users will now have to answer a question about the activity performed on the website. When amending a filing that contains Web Addresses users will receive a completeness check error if this question is not answered.


CONTACT EMPLOYEE

The Consumer Complaint Employee section of the MU1 was eliminated and all contact information will now be collected in a single Contact Employee Information section. Users must designate a primary contact employee for the company and for consumer complaints (regulator). The same person can act as both primary contacts. For any non-


primary contacts, the industry type, areas of responsibility, and relevant states must be selected. A copy button was also added to allow users to copy the company mailing address as the contact employee mailing address when appropriate. In addition, the jurisdiction listing was changed to a state listing.

BOOKS AND RECORDS INFORMATION

Users will now have to associate the records custodian with an industry type. When amending a filing, users will receive a completeness check error if this association is not made. In addition, the jurisdiction listing was changed to a state listing.


APPROVALS AND DESIGNATIONS

The Approvals and Designations screen is a new section that will collect information with regard to approvals/designations that the company holds part of which was previously collected in the Other Business section and includes the questions originally appearing in the Other Business Section. Additional approval/designation types have been added. A company must now provide the approval number in addition to selecting the approvals/designations it currently holds. The two questions at the bottom of the screen require a response regardless of any approval/designation selections. If the questions are not answered, users will receive a completeness check error.


BANK ACCOUNTS

The Bank Accounts section is new with the 2012.2 release and will collect information about a company’s Letter/Line of Credit, Operating, and/or Trust Primary accounts. This section should only be completed if required by your state regulator for the license type your company holds or is requesting. Review the relevant state licensing requirements checklists to determine if you must provide this information.


LEGAL STATUS

No Changes were made to this section.

CONTROL INFORMATION

This section was removed as this information is collected through the Affiliates/Subsidiaries, Financial Institutions, and Indirect Owners sections of the filing and users attest that the information provided in the filing is complete.

AFFILIATES/SUBSIDIARIES

Instructional text was updated to better indicate when affiliate/subsidiary information must be provided.

FINANCIAL INSTITUTIONS

Instructional text was updated to give better indicate when financial institution information must be provided.

DISCLOSURE QUESTIONS

The wording of some of the disclosure questions was updated. These updated questions will no longer have responses and the company must provide a new response to these questions to clear any completeness checks. All changes to company disclosure questions are shown in redline and final versions at the end of this document.


DISCLOSURE EXPLANATIONS

The Disclosure Explanations section was created to allow users to submit additional information about “yes” responses to disclosure questions. Currently users are required to submit disclosure explanations outside NMLS. This new functionality will allow users to submit one or more explanations for any “yes” responses and also allow users to associate multiple “yes” responses to a single explanation.

An explanation is required for all “yes” responses and the company has the option to provide a single PDF file containing supporting legal documentation or written explanations that exceed the 4,000 character limitation for the Explanation Detail field. If users fail to provide a disclosure explanation, there will be a completeness check that will prevent submission of the filing.

State regulators will have access to the explanations provided. Consult specific state regulators to determine if disclosure explanations previously provided outside of NMLS must be resubmitted through NMLS using this functionality.


DIRECT OWNERS AND EXECUTIVE OFFICERS

Control Person indication was removed.

INDIRECT OWNERS

Instructional text was updated to better indicate when indirect owner information must be provided.

QUALIFYING INDIVIDUALS

When entering a qualifying individual (as required by your state regulator(s)) you must select the applicable industry type(s) for that individual. When amending a filing that contains Qualifying Individuals, users will receive a completeness check error if an industry type is not identified. In addition, the jurisdiction listing was changed to a state listing.


DOCUMENT UPLOADS

The Document Uploads section allows users to upload PDF documents to submit to regulators with the filing. Companies can submit documents, such as their formation document, as outlined in the state licensing requirement documents. Companies can either upload additional documents of a specific type to supplement existing documents or replace an existing document with an updated document.

The document types that can be uploaded in connection with a company record are listed below, as well as an indication whether the relevant state must be identified:

Business Plan Certificate of Authority/Good Standing Certificate (State required) Debt Management Agreement Document Samples (State required) Errors and Omissions (State required) Fidelity Bond (State required) Formation Document Management Chart Organization Chart Surety Bond (State required) Trust Account Authorization (State required)

Only these document types can be uploaded in NMLS. The system will not require documents to be uploaded. Refer to specific state checklists for additional instruction as to which documents should be uploaded in NMLS. Additional document types that are required but not available for upload will continue to be submitted outside NMLS.


BRANCH FORM (MU3) CHANGES

NEW BUSINESS ACTIVITY WIZARD

The Branch Business Activities section is new with the 2012.2 release. Companies will be required to identify the business activities they conduct for new and existing branches prior to submitting a filing. By clicking Add Activity users will be taken through the business activity wizard. This will allow users to select the business activities that they perform at the branch and designate in which state those activities are performed. By clicking Add State users will be able to select additional states to associate with existing business activities. From this screen users will also be able to remove a state from a business activity as well as remove a business activity all together.

With the 2012.2 release license types will be linked to business activities. Going forward, if a company needs to transition or request a new branch license they must first verify they have added the corresponding business activity. By allowing the branches to select the state(s) relevant to the business activity, the need for the jurisdiction participation section is eliminated. The business activities section will be required for all


filings. Companies amending their record for the first time on or after April 16, 2012 will be required to select the relevant business activities, even if they are not requesting a new license.

Below are the business activities the entity will be able to select. If no activities have been identified for the branch, the company user will have the opportunity to copy the business activities listed on the most recently submitted company filing to the branch filing.


Once the activities and state(s) have been selected, the user will be able to choose which action they need to take next.

UPDATES TO CURRENT LICENSE WIZARD

Once the business activities and appropriate states have been selected, the system will provide a list of available license(s) to select from. The existing license wizard has been updated on the Branch Form for users to make their license selections and enter their existing license number(s) on one screen instead of multiple screens.



A “copy” button was added to the Identifying Information section to allow users to copy their Main Address into the mailing section when applicable. The mailing address fields are now required, users will receive a completeness check error if this is not provided.


OTHER TRADE NAMES

Users will now have to associate other trade names with one or more industry types. When amending a filing that contains Other Trade Names, users will receive a completeness check error if this association is not made. In addition, the jurisdiction listing was changed to a state listing.

BRANCH MANAGER

The Branch Manager section has been enhanced to allow for a single branch manager to be associated with each industry the company conducts business activities in. A single branch manager can be assigned to multiple industries, but there can only be one


branch manager for each industry type. Each branch manager identified will be required to submit an Individual (MU2) filing. When amending a filing, users will receive a completeness check error if this association is not made.

WEB ADDRESSES

Users will now have to answer a question about the activity performed on the website. When amending a filing that contains Web Addresses users will receive a completeness check error if this question is not answered.


BOOKS AND RECORDS INFORMATION

Users will now have to associate the record custodian with an industry type. When amending a filing, users will receive a completeness check error if this association is not made. In addition, the jurisdiction listing was changed to a state listing.


OPERATION INFORMATION

The text for the questions on the Operation Information section was updated. As a result, the questions will be unanswered when a licensee amends a filing. Users will receive a completeness check error if the new questions are not answered.

EXPENSE INFORMATION

No changes were made to this section.

DOCUMENT UPLOADS

The Document Uploads section allows users to upload PDF documents to submit to regulators with the filing. Companies can submit documents associated to their branch, such as the Branch Written Agreement, as outlined in the state licensing requirement document . Companies can either upload additional documents of a specific type to supplement existing documents or replace an existing document with an updated document.

The document types that can be uploaded in connection with a branch record are listed below, as well as indication whether the relevant state must be identified:


Branch Written Agreement Surety Bond (state required)

Only these document types can be uploaded in NMLS. The system will not require documents to be uploaded, refer to specific state checklists for additional instruction as to what information should be provided in these documents. T. Additional document types that are required but not available for upload will continue to be submitted outside NMLS.

MU2 FORMS

No changes were made to this section.


INDIVIDUAL FORM (MU2/MU4) CHANGES

Other than the sections noted blow, no other filings sections were changed with this release.


Individuals will now have to provide if they are a US Citizen. A response is required and users will receive a completeness check error if they do not provide a response. The


Government Issued Identification and Passport information fields were also added. The system does not require that these fields are completed, but users should refer to the state licensing requirements to see if the information is required by their regulator. A separate Extension field is now provided for Business Phone.

DISCLOSURE QUESTIONS

The wording of some of the disclosure questions was updated and new questions were added. These updated questions will no longer have responses and the individual must provide responses to these questions to clear any completeness checks. All changes to individual disclosure questions are shown in redline and final at the end of this document.

DISCLOSURE EXPLANATIONS

The Disclosure Explanations section was created to allow individuals to submit additional information about “yes” responses to disclosure questions. Currently users are required to submit disclosure explanations outside NMLS. This new functionality will allow users to submit one or more explanations for any “yes” responses and also allow users to associate multiple “yes” responses to a single explanation.


An explanation is required for all “yes” responses and the individual has the option to provide a single PDF file containing supporting legal documentation or written explanations that exceed the 4,000 character limitation for the Explanation Detail field.. If individuals fail to provide a disclosure explanation there will be a completeness check that will prevent submission of an amendment filing.

State regulators will have access to the explanations provided. Consult specific state regulators to determine if disclosure explanations previously provided outside of NMLS must be resubmitted through NMLS using this functionality.


COMPANY DISCLOSURE QUESTION CHANGES – REDLINE

Criminal Disclosure

(A) Has the entity or a control affiliate ever:

(1) been convicted of or pled guilty or nolo contendere ("no contest") in a domestic, foreign, or military court to any felony?

(2) been charged with any felony?

(B) (1) Iin the past 10 years has the entity or a control affiliate been convicted of pled guilty or

nolo contendere (“no contest”) in a domestic, foreign, or military court to committing or conspiring to commit a misdemeanor involving: (i) financial services or a financial services-related business, (ii) fraud, (iii) false statements or omissions, (iv) theft or wrongful taking of property, (v) bribery, (vi) perjury, (vii) forgery, (viii) counterfeiting, or (ix) extortion?

(2) Aare there pending charges against the entity or a control affiliate for a misdemeanor specified in (B)(1)?

Regulatory Action Disclosure

(C) In the past 10 years, has any State or federal regulatory agency or foreign financial

regulatory authority or self-regulatory organization (SRO) ever: (1) found the entity or a control affiliate to have made a false statement or omission or been

dishonest, unfair or unethical? (2) found the entity or a control affiliate to have been involved in a violation of a financial

services-related regulations(s) or statute(s)?

(3) found the entity or a control affiliate to have been a cause of a financial services-related business having its authorization to do business denied, suspended, revoked or restricted?

(4) entered an order against the entity or a control affiliate in connection with a financial

services-related activity?

(5) denied, suspended, or revoked the entity’s or a control affiliate’s registration or license or otherwise, by otherwise, by order, prevented it from associating with a financial services-related business or restricted its activities?

(D) Has the entity’s or a control affiliate’s authorization to act as an attorney, accountant, or State or federal contractor ever been revoked or suspended?

(E) Is the entity or a control affiliate now the subject of any regulator proceeding that could result in a “yes” answer to any part of (C)? Is there a pending regulatory action against


the entity or a control affiliate for any alleged violation described in (C) through (D)?

Civil Judicial Disclosure

(F) Has any domestic or foreign court: (1) in the past ten years enjoined the entity or a control affiliate in connection with any

financial services-related activity?

(2) in the past ten years found the entity or a control affiliate was involved in a violation of any financial services-related statue(s) or regulation(s)?

(3) in the past ten years dismissed, pursuant to a settlement agreement, a financial services-related civil action brought against the entity or control affiliate by a State or foreign financial regulatory authority?

(G) Is the entity or a control affiliate named in any pending financial services related civil action that could result in a “yes” answer” to any part of (F)? Is there a pending financial services-related civil action in which the entity or a control affiliate is named for any alleged violation described in (F)?

Financial Disclosure

(H) In the past ten years has the entity or a control affiliate been a mortgage lender or a mortgage broker or a control affilaite of a mortgage lender or a mortgage broker that has been the subject of a bankruptcy petition?

(I) Has a bonding company ever denied, paid out on, or revoked a bond for the entity?

(J) Does the entity have any unsatisfied judgments or liens against it?


COMPANY DISCLOSURE QUESTION CHANGES – FINAL

Criminal Disclosure

(A) Has the entity or a control affiliate ever:

(1) been convicted of or pled guilty or nolo contendere ("no contest") in a domestic, foreign, or military court to any felony?

(2) been charged with any felony?

(B) (1) In the past 10 years has the entity or a control affiliate been convicted of pled guilty or

nolo contendere (“no contest”) in a domestic, foreign, or military court to committing or conspiring to commit a misdemeanor involving: (i) financial services or a financial services-related business, (ii) fraud, (iii) false statements or omissions, (iv) theft or wrongful taking of property, (v) bribery, (vi) perjury, (vii) forgery, (viii) counterfeiting, or (ix) extortion?

(2) Are there pending charges against the entity or a control affiliate for a misdemeanor specified in (B)(1)?

Regulatory Action Disclosure

(C) In the past 10 years, has any State or federal regulatory agency or foreign financial

regulatory authority or self-regulatory organization (SRO) ever: (1) found the entity or a control affiliate to have made a false statement or omission or

been dishonest, unfair or unethical? (2) found the entity or a control affiliate to have been involved in a violation of a financial

services-related regulations(s) or statute(s)?

(3) found the entity or a control affiliate to have been a cause of a financial services-related business having its authorization to do business denied, suspended, revoked or restricted?

(4) entered an order against the entity or a control affiliate in connection with a financial services-related activity?

(5) denied, suspended, or revoked the entity’s or a control affiliate’s registration or license or otherwise, by otherwise, by order, prevented it from associating with a financial services-related business or restricted its activities?

(D) Has the entity’s or a control affiliate’s authorization to act as an attorney, accountant, or State or federal contractor ever been revoked or suspended?

(E) Is there a pending regulatory action against the entity or a control affiliate for any alleged violation described in (C) through (D)?


Civil Judicial Disclosure

(F) Has any domestic or foreign court: (1) in the past ten years enjoined the entity or a control affiliate in connection with any

financial services-related activity?

(2) in the past ten years found the entity or a control affiliate was involved in a violation of any financial services-related statue(s) or regulation(s)?

(3) in the past ten years dismissed, pursuant to a settlement agreement, a financial services-related civil action brought against the entity or control affiliate by a State or foreign financial regulatory authority?

(G) Is there a pending financial services-related civil action in which the entity or a control affiliate is named for any alleged violation described in (F)?

Financial Disclosure

(H) In the past ten years has the entity or a control affiliate been the subject of a bankruptcy petition?

(I) Has a bonding company ever denied, paid out on, or revoked a bond for the entity?

(J) Does the entity have any unsatisfied judgments or liens against it?


INDIVIDUAL DISCLOSURE QUESTION CHANGES – REDLINE

Financial Disclosure (A) Within the past 10 years:

(1) Have you filed a personal bankruptcy petition or been the subject of an involuntary bankruptcy petition within the past 10 years?

(2) Based upon events that occurred while you exercised control over any organization, has any organization have you filed a bankruptcy petition or been the subject of an involuntary bankruptcy petition within the past 10 years?

(3) Have you been the subject of a foreclosure action within the past 10 years?

(B) Has a bonding company ever denied, paid out on, or revoked a bond for you?

(C) Based upon activities that occurred while you exercised control over an organization, has any bonding company ever denied, paid out on, or revoked a bond for any organization?

(D) Do you have any unsatisfied judgments or liens against you?

(E) Are you delinquent on any court ordered child support payments?

Criminal Disclosure (F)

(1) Have you ever been convicted of or pled guilty or nolo contendere ("no contest") in a domestic, foreign, or military court to any felony?

(2) Are there pending charges against you for any felony?

(G) Based upon activities that occurred while you exercised control over an organization:(1) Has any organization ever been convicted of or pled guilty or nolo contendere

("no contest") in a domestic, foreign, or military court to any felony?

(2) Are there pending charges against any organization for any felony?

(H) (1) Have you ever been convicted of or pled guilty or nolo contendere ("no contest")

in a domestic, foreign, or military court to committing or conspiring to commit a misdemeanor involving: (i) financial services or a financial services-related business, (ii) fraud, (iii) false statements or omissions, (iv) theft or wrongful taking of property, (v) bribery, (vi) perjury, (vii) forgery, (viii) counterfeiting, or (ix) extortion?

(2) Are there pending charges against you for a misdemeanor specified in (H(1)?


(I) Based upon activities that occurred while you exercised control over an organization: (1) Has any organization ever been convicted of or pled guilty or nolo contendere

("no contest") in a domestic, foreign, or military court to any misdemeanor specified in (H)(1)?

(2) Are there pending charges against any organization for any misdemeanor

specified in (H)(1)?

Civil Judicial Disclosure (HJ)

(1) Has any domestic or foreign court ever:

(a) enjoined you in connection with any financial services-related activity?

(b) found that you were involved in a violation of any financial services-related statute(s) or regulation(s)?

(c) dismissed, pursuant to a settlement agreement, a financial services-related civil action brought against you by a State, federal, or foreign financial regulatory authority?

(2) Are you named in any pending financial services-related civil action that could result in a “yes” answer to any part of H(1)? Is there a pending financial services-related civil action in which you are named for any alleged violation descirbed in (J)(1)?

(3) Based upon activities that occurred while you exercised control over an organization, is there a pending financial services-related civil action in which any organization is named for any alleged violation described in (J)(1)?

Regulatory Action Disclosure (KI) Has any State or federal regulatory agency or foreign financial regulatory authority

or self-regulatory organization (SRO) ever: (1) found you to have made a false statement or omission or been dishonest, unfair or

unethical?

(2) found you to have been involved in a violation of a financial services-related business regulation(s) or statute(s)?

(3) found you to have been a cause of a financial services-related business having its authorization to do business denied, suspended, revoked or restricted?

(4) entered an order against you in connection with a financial services-related activity?

(5) revoked your registration or license?

(6) denied or suspended your registration or license or application for licensure, disciplined you, or otherwise by order, prevented you from associating with a


financial services-related business or restricted your activities?

(7) barred you from association with an entity regulated by such commissions, authority, agency, or officer, or from engaging in a financial services-related business?

(8) issued a final order against you based on violations of any law or regulations that prohibit fraudulent, manipulative, or deceptive conduct?

(9) entered an order concerning you in connection with any license or registration?

(LJ)Have you ever had an authorization to act as an attorney, accountant, or State or federal contractor that was revoked or suspended?

(M) Based upon activities that occurred while you exercised control over an organization, has any State or federal regulatory agency or foreign financial regulatory authority or self-regulatory organization (SRO) ever taken any of the actions listed in (K) through (L) above against any organization?

(KN) Are you now the subject of any regulatory action proceeding that could result in a “yes” answer to any part of I or J? Is there a pending regulatory action proceeding against you for any alleged violation described in (K) through (L)?

(O) Based upon activities that occurred while you exercised control over an organization, is there a pending regulatory action proceeding against any organization for any alleged violation described in (K) through (L)?

Customer Arbitration/Civil Litigation Disclosure (PL) Have you ever been named as a respondent/defendant in a financial

services-related consumer-initiated arbitration or civil litigation which: (1) is still pending; or?

(2) resulted in an arbitration award or civil judgment against you, regardless of amount, or that required corrective action; or?

(3) was settled for any amount?

Termination Disclosure

(MQ) Have you ever voluntarily resigned, been discharged, or permitted to resign after allegations were made that accused you of:

(1) violating statute(s), regulation(s), rule(s), or industry standards of conduct?

(2) fraud, dishonesty, theft, or the wrongful taking of property?

NMLS or SRR Testing Rules of Conduct Disclosure

(R) (1) Have you ever been found to have violated any Rule of Conduct for test takers of

the SAFE MLO Test or found to have violated the NMLS Industry Terms of Use as


it pertains to enrolling, scheduling or taking the SAFE MLO Test?

(2) Have you been notified that you are the subject of an investigation by the Mortgage Testing and Education Board (MTEB) or State Regulatory Registry LLC (SRR) regarding an alleged violation of the Rules of Conduct for test takers of the SAFE MLO Test or the NMLS Industry Terms of Use as it pertains to enrolling, scheduling or taking the SAFE MLO Test?

INDIVIDUAL DISCLOSURE QUESTION CHANGES - FINAL

Financial Disclosure (A)

(1) Have you filed a personal bankruptcy petition or been the subject of an involuntary bankruptcy petition within the past 10 years?

(2) Based upon events that occurred while you exercised control over an organization, has any organization filed a bankruptcy petition or been the subject of an involuntary bankruptcy petition within the past 10 years?

(3) Have you been the subject of a foreclosure action within the past 10 years?

(B) Has a bonding company ever denied, paid out on, or revoked a bond for you?

(C) Based upon activities that occurred while you exercised control over an organization, has any bonding company ever denied, paid out on, or revoked a bond for any organization?

(D) Do you have any unsatisfied judgments or liens against you?

(E) Are you delinquent on any court ordered child support payments?

Criminal Disclosure (F)

(1) Have you ever been convicted of or pled guilty or nolo contendere ("no contest") in a domestic, foreign, or military court to any felony?

(2) Are there pending charges against you for any felony?

(G) Based upon activities that occurred while you exercised control over an organization:(1) Has any organization ever been convicted of or pled guilty or nolo contendere

("no contest") in a domestic, foreign, or military court to any felony?

(2) Are there pending charges against any organization for any felony?

(H) (1) Have you ever been convicted of or pled guilty or nolo contendere ("no contest")

in a domestic, foreign, or military court to committing or conspiring to commit a misdemeanor involving: (i) financial services or a financial services-related


business, (ii) fraud, (iii) false statements or omissions, (iv) theft or wrongful taking of property, (v) bribery, (vi) perjury, (vii) forgery, (viii) counterfeiting, or (ix) extortion?

(2) Are there pending charges against you for a misdemeanor specified in (H(1)?

(I) Based upon activities that occurred while you exercised control over an organization: (1) Has any organization ever been convicted of or pled guilty or nolo contendere

("no contest") in a domestic, foreign, or military court to any misdemeanor specified in (H)(1)?

(2) Are there pending charges against any organization for any misdemeanor

specified in (H)(1)?

Civil Judicial Disclosure (J)

(1) Has any domestic or foreign court ever:

(a) enjoined you in connection with any financial services-related activity?

(b) found that you were involved in a violation of any financial services-related statute(s) or regulation(s)?

(c) dismissed, pursuant to a settlement agreement, a financial services-related civil action brought against you by a State, federal, or foreign financial regulatory authority?

(2) Is there a pending financial services-related civil action in which you are named for any alleged violation described in (J)(1)?

(3) Based upon activities that occurred while you exercised control over an organization, is there a pending financial services-related civil action in which any organization is named for any alleged violation described in (J)(1)?

Regulatory Action Disclosure (K) Has any State or federal regulatory agency or foreign financial regulatory authority or

self-regulatory organization (SRO) ever: (1) found you to have made a false statement or omission or been dishonest, unfair or

unethical?

(2) found you to have been involved in a violation of a financial services-related business regulation(s) or statute(s)?

(3) found you to have been a cause of a financial services-related business having its authorization to do business denied, suspended, revoked or restricted?

(4) entered an order against you in connection with a financial services-related


activity?

(5) revoked your registration or license?

(6) denied or suspended your registration or license or application for licensure, disciplined you, or otherwise by order, prevented you from associating with a financial services-related business or restricted your activities?

(7) barred you from association with an entity regulated by such commissions, authority, agency, or officer, or from engaging in a financial services-related business?

(8) issued a final order against you based on violations of any law or regulations that prohibit fraudulent, manipulative, or deceptive conduct?

(9) entered an order concerning you in connection with any license or registration?

(L) Have you ever had an authorization to act as an attorney, accountant, or State or federal contractor that was revoked or suspended?

(M) Based upon activities that occurred while you exercised control over an organization, has any State or federal regulatory agency or foreign financial regulatory authority or self-regulatory organization (SRO) ever taken any of the actions listed in (K) through (L) above against any organization?

(N) Is there a pending regulatory action proceeding against you for any alleged violation described in (K) through (L)?

(O) Based upon activities that occurred while you exercised control over an organization, is there a pending regulatory action proceeding against any organization for any alleged violation described in (K) through (L)?

Customer Arbitration/Civil Litigation Disclosure (P) Have you ever been named as a respondent/defendant in a financial services-

related consumer-initiated arbitration or civil litigation which: (1) is still pending? (2) resulted in an arbitration award or civil judgment against you, regardless of amount, or that required corrective action? (4) was settled for any amount?

Termination Disclosure

(Q) Have you ever voluntarily resigned, been discharged, or permitted to resign after

allegations were made that accused you of:

(1) violating statute(s), regulation(s), rule(s), or industry standards of conduct?

(2) fraud, dishonesty, theft, or the wrongful taking of property?


NMLS or SRR Testing Rules of Conduct Disclosure

(R) (1) Have you ever been found to have violated any Rule of Conduct for test takers of

the SAFE MLO Test or found to have violated the NMLS Industry Terms of Use as it pertains to enrolling, scheduling or taking the SAFE MLO Test?

(2) Have you been notified that you are the subject of an investigation by the Mortgage Testing and Education Board (MTEB) or State Regulatory Registry LLC (SRR) regarding an alleged violation of the Rules of Conduct for test takers of the SAFE MLO Test or the NMLS Industry Terms of Use as it pertains to enrolling, scheduling or taking the SAFE MLO Test?

form change overview april 2012 - nmls resource center · new business activity wizard – add...

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