For a covered dwelling-secured consumer loan, an organization follows its reasonable written policy and determines that the licensed originator who negotiated terms has primary responsibility when the note is issued. A processor ordered verifications and a manager approved an exception. The organization and primary originator both have NMLSR IDs. Whose names and IDs must appear on the note?
Correct Answer
C) The 1 originator with primary responsibility, and the organization
C. Include the organization and the individual originator with primary responsibility. The rule identifies the responsible individual at the time the document is issued. Document preparation or management approval alone does not substitute another person for the identified primary originator. Scope and exceptions: Actual activities matter; do not assume every manager or processor is always excluded from origination. Previously issued documents need not be reissued solely because the primary originator later changes. This example assumes assigned IDs. Source: Section 1026.36(g)(1); comment 36(g)(1)(ii)-1 — https://www.consumerfinance.gov/rules-policy/regulations/1026/36/
Why This Is the Correct Answer
C. Include the organization and the individual originator with primary responsibility. The rule identifies the responsible individual at the time the document is issued. Document preparation or management approval alone does not substitute another person for the identified primary originator. Scope and exceptions: Actual activities matter; do not assume every manager or processor is always excluded from origination. Previously issued documents need not be reissued solely because the primary originator later changes. This example assumes assigned IDs.
Why the Other Options Are Wrong
Option A: The branch manager, as the person who approved the file for closing
Managerial approval does not override the stated responsibility determination.
Option B: All 3, since each contributed to the origination of the loan
The rule does not require identifiers for everyone who touched the file.
Option D: The processor, because she assembled the documents that became the file
Assembling the file does not establish primary origination responsibility.
Exam Tip
Use responsibility at issuance, not job seniority or document handling.
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