The Mortgage Bankers Association of New Jersey issued a proposal that would give mortgage loan officers the ability to work from home on a permanent basis, eliminating the need to work within a specified proximity to a licensed branch office.
The proposal was circulated through an email newsletter and was further detailed in a full proposal penned by E. Robert Levy, executive director of the MBANJ. The proposal also highlights special designations such as a virtual MLO (VMLO) as well as the possibility of additional continuing education requirements.
"A licensee shall disclose in its MU1 application if it permits remote home mortgage loan originations. Those companies permitting remote mortgage loan originations must maintain robust cybersecurity and ensure an appropriate work environment," according to the proposal.
The proposal states that no consumer shall be present in the MLO's home, nor shall the home be marketed or advertised as an office or public location. It also states that modes of communication outside of in-person meetings shall be provided and no physical documents shall be maintained by MLOs at any time.
"The MLO must attest/affirm in writing that the home workspace meets each requirement set forth with sufficient detail for the regulator to review and approve," according to the proposal.
"It is the company’s responsibility to ensure that all conditions are met, without entering the MLO’s home. The company shall have policies and procedures, approved by the regulator, that ensure the criteria for a remote home workspace are met."
Additionally, the proposal states that "regulators may want to also consider adding two additional hours to the annual continuing education requirements focusing on remote work, consumer privacy and information security."
