Nationwide Multi-State Licensing System and Registry (US)

The Nationwide Multi-State Licensing System and Registry (NMLS) is a web-based online framework for cooperation among financial regulators in all US states to improve the effectiveness of their consumer protection mandates by aiding in the regulation of mortgage companies[1], branches, and individual mortgage loan originators. In enables the management of license applications and ongoing regulation of all non-depository financial institutions.

The system provides for all mortgage originators to be assigned a unique identifying number that would be associated with them as they moved between companies, and between states, thus helping to prevent problematic individuals from escaping the consequences of their past activities.

History

Origins

NMLS was created in January 2008 by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR)[2], both based in Washington, DC. It began operations as a voluntary system among seven states cooperating to improve regulation of the mortgage and other non-depository industries through better supervision, streamlined licensing procedures, and enhanced consumer protection.

The SAFE Act

Title V of The Housing and Economic Recovery Act for 2008 (HERA), the Secure and Fair Enforcement for Mortgage Licensing Act, required that all states license mortgage originators through NMLS, and required all licensed and registered mortgage originators to register with NMLS[3]. The SAFE Act requires originators to complete pre-licensing education approved by NMLS.

Expansion

In 2017, New York regulators announced the expansion of their use of NMLS to include regulation of money transmitters[4].

NMLS 2.0

NMLS 2.0 is scheduled for release in the second quarter of 2019[5].

See also

References

  1. ↑ "Nationwide Multi-State Licensing System and Registry". Harvard Kennedy School.
  2. ↑ "California's Transition to NMLS – Nationwide Multistate Licensing System". California Dept. of Business Oversight. State of California. Retrieved August 6, 2018.
  3. ↑ Vong, John (June 2009). "One For All, All For One". Mortgage Banking. Retrieved August 6, 2018.
  4. ↑ Swanson, Brena. "New York regulators expand NMLS to broaden authority". HousingWire. HousingWire. Retrieved August 6, 2018.
  5. ↑ Hall, Phil. "NMLS 2.0 Debut Delayed for One Year". National Mortgage Professional Magazine. Retrieved August 6, 2018.
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