Company and individual users of NMLS must provide Disclosure Explanations for any Disclosure Question with a ‘Yes’ response, and may provide explanations for ‘No’ responses.
Example One – One ‘Yes’ Response, One Event
An individual has been named in financial services-related consumer-initiated civil litigation (Event).
Example Two – One ‘Yes’ Response, Two Events
An individual has twice previously been named in financial services-related consumer-initiated civil litigation (Event 1 and Event 2). Both lawsuits were settled for some amount.
Example Three – Two ‘Yes’ Responses, One Event
An individual was found by a State regulator to have been dishonest, unfair or unethical (Regulatory Finding). In NMLS, he or she may need to answer questions (K)(1) and (K)(8), both related to dishonest or deceptive conduct, ‘Yes’.
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