| There has been talk about the new Nationwide | | | | company information into the Nationwide Mortgage |
| Mortgage Licensing System (NMLS) for a couple | | | | Licensing System. The biggest question for most |
| years now, and now it is finally hear. There has been a | | | | mortgage companies is whether this will simplify the |
| lot of speculation on how this will affect the mortgage | | | | mortgage licensing process. The answer is slightly. |
| licensing process. With 42 states now agreeing to take | | | | Even though you will only need to submit your |
| part, 7 states agreeing to use the system starting 1/2 | | | | company information once, you still will need to submit |
| 08 and 8 more states agreeing to join by the end of | | | | everything to the state that is not part of the |
| 2008, what exactly will the Nationwide Mortgage | | | | Nationwide Mortgage Licensing System. This can |
| Licensing System do? | | | | include, fingerprints, company financials, personal |
| That is the question everyone is asking. What will the | | | | financials, surety bonds, additional forms, secretary of |
| system do? Here is a brief overview of the | | | | state filings, trade name certificates, etc. The list can |
| Nationwide Mortgage Licensing System, what it will do | | | | go on for a while depending on the state. So yes, you |
| now, and what the plans are for the future. | | | | will only need to provide your company's basic |
| Central Repository | | | | information once, which is a great relief, but you will still |
| The Nationwide Mortgage Licensing System has been | | | | need to work with each state's regulatory agency in |
| developed as a central repository for pertinent | | | | order to process the remaineder of the conditions. |
| information on mortgage companies licensed by the | | | | States Joining in 2008 |
| states. Each company will only have one record in the | | | | The following states will be joining the Nationwide |
| system, which will include information on the Company, | | | | Mortgage Licensing System some time in 2008.o |
| its owners, officers, and directors, its branch locations, | | | | Washingtono Lousianao Pennsylvaniao Vermonto |
| and its Loan Originators. This is the main purpose of | | | | New Hampshireo Mississippio North Carolina |
| the Nationwide Mortgage Licensing System. Instead of | | | | Continuing Education |
| providing the same information to each state on their | | | | In the future, the Nationwide Mortgage Licensing |
| own state-specific form, you will just provide your | | | | System will also maintain information on continuing |
| information once to the Nationwide Mortgage Licensing | | | | education for the loan officers and responsible officers. |
| System and then make sure to maintain it and update | | | | The plan is for the system to link to the certified |
| it as needed. Of course, this only works for the states | | | | continuing education providers so that they can update |
| that are using the system. | | | | the states immediately when someone has completed |
| Initial States | | | | education. |
| The initial states that will be using the system as of 1/2 | | | | Conclusion |
| 08 are:o Idahoo Iowao Rhode Islando New Yorko | | | | For the most part, the Nationwide Mortgage Licensing |
| Kentuckyo Massachusettso Nebraska | | | | System will make it easier for mortgage companies to |
| Any companies that are licensed in these states | | | | maintain their mortgage licenses, but it will still be very |
| should have already requested an account | | | | burdensome to apply for licenses in each state. For |
| administrator login and will be receiving information on | | | | the most part, the Nationwide Mortgage Licensing |
| how to log in and use the system in the last week of | | | | System (NMLS) will be more of a tool for regulators to |
| December. If you are currently licensed in any of these | | | | work across state borders in finding companies that |
| states, after 1/2/08 you will need to create one | | | | are not complying with the laws of the state or |
| company record and provide information on the | | | | possibly committing fraud. The regulatory agencies will |
| Company, its owners, officers, and directors, its branch | | | | now be interlinked by this one system so any |
| locations, and its Loan Originators. | | | | mortgage companies that are not in compliance in one |
| New Mortgage License Applications | | | | state may be more likely to receive audits in another |
| Anyone that is not currently licensed in any of these | | | | state. Now is the time to focus on compliance if your |
| states but is interested in obtaining licenses in these | | | | mortgage company has been avoiding it in the past. |
| states after the new year, will need to first submit their | | | | |