Michigan Department of Insurance and Financial Services sent this bulletin at 09/25/2020 02:26 PM EDT Show
 Information The novel COVID-19 pandemic presents many challenges for Michigan financial services licensees and registrants and their borrowers. To provide licensees, registrants, and consumers with information, guidance, resources, and answers to frequently asked questions, the Department of Insurance and Financial Services (DIFS) has established a website devoted to COVID-19 related issues. The website is updated frequently and provides FAQs for all licensees and registrants, separated by license or registration type. Licensees and registrants are encouraged to check the page frequently as additional resources and FAQs will appropriately be added as they are approved by DIFS. The specific updated FAQs for mortgage broker, lender, servicer, and originator licensees and registrants are provided below. Mortgage Broker, Lender, Servicer, and Originator Licensee and Registrant Frequently Asked Questions FAQs for mortgage loan originators can be found here. FAQs for mortgage brokers, lenders and services can be found here. For your convenience, the FAQs as of today are stated below: Mortgage Loan Originators Can a licensed mortgage loan originator work from home if diagnosed with COVID-19? Yes. The Mortgage Loan Originator Licensing Act does not prohibit a licensed mortgage loan originator from working from home. However, the licensed mortgage loan originator and their employer/sponsor are responsible for the same consumer security obligations regardless of the licensed mortgage loan originator location. What type of consumer security obligations does a mortgage loan originator who works from home have? The mortgage loan originator (MLO) must follow the information security program of their employer/sponsor. In addition, the MLO must be able to access their company’s secure platform(s) (including a cloud-based system) directly from a remote device (laptop, phone, desktop computer, tablet, etc.) using a virtual private network (VPN) or similar system that requires passwords or other forms of authentication to access. All security updates, patches or other secure alterations to devices must be maintained. Can a licensed mortgage loan originator keep business records at a location other than a licensed mortgage office? The mortgage loan originator (MLO) is not prohibited from keeping business records at their home location while working from home. However, all business records must be maintained in accordance with policies and procedures to comply with safeguard rules and requirements. In addition, the MLO must work with their employer/sponsor to ensure all mortgage records are maintained in accordance with record retention rules and requirements. Can a licensed mortgage loan originator (MLO) conduct an in-person meeting with a consumer at the MLO’s home location? This is not advisable, especially during the COVID-19 crisis. The MLO should utilize alternative communication methods whenever possible to conduct mortgage business through the end of the pandemic. If in-person meetings are necessary, the MLO must follow all relevant aspects of the Governor’s executive orders including, but not limited to, Executive Order 2020-153 Masks. Other executive orders can be found here.
No. What if I encounter a situation that is not addressed within these FAQ’s? Mortgage Licensees and Registrants Has an extension for filing financial statements been granted due to the Covid-19 pandemic?
Can a licensee/registrant allow its employees/agents to work from home during the COVID-19 crisis? Yes. A licensee/registrant may allow its employees/agents, including mortgage loan originators, to work from home. Licensees/registrants are responsible for maintaining adequate oversight and control over all individuals conducting mortgage business activity under its respective license/registration. This accountability includes
compliance with all applicable mortgage statutes and federal regulations.What type of consumer security obligation does a licensee/registrant have if it allows its employees/agents to work from home? Can an employee/agent of a licensee/registrant keep business records at a location other than a licensed mortgage office? Yes. A licensee/registrant is required to follow all relevant executive orders issued by Governor Whitmer pertaining to the COVID-19 crisis including, but not limited to, Executive Order 2020-175: Safeguards to protect Michigan’s Workers from COVID-19. Other executive orders can be found here.
Email your question to . Please mark your message “High Importance” and include MORTGAGE/MLO COVID-19 QUESTION in your subject line and you will receive a direct response. How long does a mortgage company have to keep records?Section 1026.25(c)(2)(i) requires a creditor to maintain records sufficient to evidence all compensation it pays to a loan originator, as well as the compensation agreements that govern those payments, for three years after the date of the payments.
How long must each licensee retain records of all their complete mortgage transactions?To summarize, the required minimum by law is to maintain and retain all records for three years. This includes any emails.
How long must licensees maintain copies of documents related to residential mortgage loans under the Residential mortgage Licensing Act Nebraska?[3 years] Mortgage licensees must maintain records for three years from the date of closing or the date of loan application.
How long must a mortgage company retain complete records of each loan application after it has been submitted or the loan has been repaid?Evidence of compliance with repayment ability provisions.
A creditor must retain evidence of compliance with § 1026.43 for three years after the date of consummation of a consumer credit transaction covered by that section.
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Michigan mortgage licensees are required to maintain records relating to mortgage loans for
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