Over the summer, the NMLS implemented Release 2019.7, which requires NMLS company users to provide worker classification information for certain individuals associated with the company’s record. While the release is in support of Temporary Authority to Operate (which goes into effect November 24, 2019), the requirement does not encompass mortgage loan originators exclusively — it also encompasses natural person owners, officers, directors, qualifying individuals, and branch managers. (A comprehensive list of such individuals can be obtained by clicking on any of the hyperlinks under the “Related Entities (MU2s)” section of a company’s NMLS homepage.)
Worker classification information can be completed on the Relationships screen (found under the Filing tab). Specifically, a radio button for either “W2 Employee” or “Non-W2 Employee (Independent Contractors, Appointed Officers or Directors, Owners, Etc.)” will need to be selected. Also, a relationship begin date (MM/DD/YYYY) is needed (assuming that one has not already been entered) according to the following guidelines:
- W2 employees – Date of employment
- Independent contractors – Contract start date
- Appointed officers or directors – Date of appointment
- Owners – Date ownership interest was acquired
Finally, a worker classification begin date (MM/DD/YYYY) is required. The worker classification begin date cannot precede the relationship begin date. And the relationship begin date should adhere to the following criteria from the NMLS Worker Classification Quick Reference Guide:
The Worker Classification Begin Date is most likely the same as the Relationship Begin Date. However, for example, if the individual changed from a Non-W2 Employee to a W2 Employee after the relationship was established, the corresponding Worker Classification Begin Date would be the date when the individual became a W2 Employee.
Until companies provide working classification information for all relevant individuals, they will continue to see a banner at the top of their NMLS homepages that states the following: One or more individuals you have a relationship with does not have worker classification filled in. And while providing working classification information will not be a completeness check preventing the submission of an NMLS Company Form or a renewal request, it will be required (1) for any newly-created company relationships going forward, and (2) prior to submission of any application for temporary authority to operate.
If you haven’t done so already, now is probably a good time to do an audit, gathering key information on all company personnel and principals, which may be required now or in the future. As always, APPROVED is available to provide guidance and assistance.