UPDATED COVID-19 Information and Frequently Asked Questions - Mortgage Company and MLOs

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.

Is a mortgage loan originator that has been diagnosed with COVID-19 required to notify the Department of Insurance and Financial Services?

No.

What if I encounter a situation that is not addressed within these FAQ’s?
Email your question to DIFS-OCFInquiriesandInfo@michigan.gov. Please mark your message “High Importance” and include MORTGAGE/MLO COVID-19 QUESTION in your subject line and you will receive a direct response.

 

Mortgage Licensees and Registrants

Has an extension for filing financial statements been granted due to the Covid-19 pandemic?
Yes. A temporary policy has been put into place that extends the financial statement deadline 30 days for regulated entities that cannot meet the original deadline. The extended due date is now 120 days from the end of the company’s fiscal year. Fees for filing late, if applicable, will be waived during this period. 

Name of Report	Current Report Due Date	Extended Report Due Date
MCR Standard Financial Condition	90 days from end of the company’s fiscal year	120 days from the end of the company’s fiscal year

 

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?
A licensee/registrant must ensure all of its employees/agents follow its information security program. In addition, individuals representing a licensee/registrant while working remotely 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 an employee/agent of a licensee/registrant keep business records at a location other than a licensed mortgage office?
An employee/agent 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, a licensee/registrant is responsible for ensuring all mortgage records are maintained in accordance with record retention rules and requirements.

Is a licensee/registrant required to have policies and procedures in place to protect its employees/agents from the potential spread of COVID-19?

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.

If a licensee/registrant allows consumers to enter its business office location during the COVID-19 crisis, is the licensee/registrant responsible for consumer safety during the pandemic?
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 2020-153 Masks. Other executive orders can be found here.

Does DIFS have the authority to hold a licensee/registrant accountable if a licensee/registrant does not comply with an executive order?
Yes. DIFS will prioritize enforcement of COVID-19-related laws among its regulated entities. Executive Directive 2020-08 requires State of Michigan departments to consider violations of law when determining eligibility for licensing and treat non-compliance as presumptive evidence of a public health hazard. DIFS issued a press release on August 17, 2020 with more information.

What if I encounter a situation that is not addressed within these FAQ’s?

Email your question to DIFS-OCFInquiriesandInfo@michigan.gov. Please mark your message “High Importance” and include MORTGAGE/MLO COVID-19 QUESTION in your subject line and you will receive a direct response.