DFPI Guidance Regarding Remote Work

Onus put on branch managers to actively monitor MLOs

Remote Work

1. Only one employee or multiple employees who reside at the location and are members of the same immediate family work at the remote location.

2. If confidential physical files are accessible at the remote location, and whether the remote location contains secure storage that protects confidential physical files.

3. The MLO is assigned to a designated branch office, and such designated branch office is reflected on all communications to the public by the MLO.

4. The employee’s communications with the public are subject to the licensee’s supervision or a designated communication person.

5. Electronic mail is through the licensee’s electronic email system.

6. All loan processing is reviewable at the main or branch office.

7. Written supervisory procedures pertaining to supervision of loan origination and lending activities conducted remotely are maintained and enforced by the licensee.

8. A list of the remote locations is maintained by the licensee.

9. All records can be accessed by the DFPI at the main or branch office location.

10. Written supervisory procedures contain specific provisions regarding cybersecurity and a virtual privacy network (VPN) or other secure system at the remote location, including:

a. Multi-factor authentication,

b. Back-up system and data recovery system, and

c. Protocols in the event of a cybersecurity incident.

The DFPI is committed to working with licensees to ensure adequate supervision of employees working from remote locations while recognizing the increased desire and ability of their employees to perform work functions remotely.

Questions regarding this guidance may be directed to [email protected].

This article was originally published in the California Broker April 2023 issue.
Published on
Apr 13, 2023
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