There has been talk about a new Nationwide Mortgage Licensing System (NMLS) for a couple years now, and now it is finally heard. There has been a lot of speculation about how this will affect the mortgage authorization process. With 42 states now agree to participate, 7 countries agree to use the system starts 1/2/08 and 8 state accepting the end of 2008, what will the Nationwide Mortgage Licensing System do?
That is the question that everyone is asking. What will the system do? Here is a brief overview of the Nationwide Mortgage licensing system, what it will do now, and what the plans are for the future.
The Nationwide Mortgage Licensing System has been developed as a central repository for relevant information on the mortgage companies operating states. Each company will have only one file system, which will include information about the company, its owners, officers and managers, branch places, and credit the author. This is the main goal of Nationwide Mortgage licensing system. In order to provide the same information to each state’s own state-specific form of, you just have to provide information as to the Nationwide Mortgage licensing system and then make sure to keep it as updated as necessary. Of course, this only works for domains that are using the system.
first said to be using the system from 1/2 / 08 are:
o Rhode Island
o New York
Any company licensed in these countries have requested already have an account administrator login and will receive information on how to log in and use the system in the last week of December. If you are authorized in those States after 1/2/08 you need to create a company and provide information about the company, its owners, officers and managers, branch places, and loans of its creators.
New Mortgage License Applications
Someone who is not currently authorized in any of these countries, but interested in obtaining a license in these states after the New Year, have to first submit details of their company in the Nationwide Mortgage licensing system. The biggest question for most mortgage companies is whether this will simplify the mortgage authorization process. The answer is slight. Even if you only need to submit your company information once, you still need to make up to a state that is not part of the Nationwide Mortgage licensing system. This may include fingerprints, financial, personal finance, surety bonds, more form, Secretary of State filings, trade name certificates, etc. the list can go on for a while after position. So yes, you only need to provide basic information of your company once, which is a relief, but you will still have to work with the regulatory agencies of each state in order to work remaineder their conditions.
States Connect 2008
The following countries are joining the nationwide mortgage licensing system sometime in 2008.
o New Hampshire
o North Carolina
In the future, Nationwide Mortgage Licensing System will also keep track of information about continuing education for loan officers and responsible officers. The intention is that the system to connect with established lifelong learning centers so that they can update state immediately when someone has completed their studies.
For the most part, the Nationwide Mortgage Licensing System will make it easier for mortgage companies to maintain mortgage license, but it will still be very burdensome to apply for a license in each state. For the most part, the Nationwide Mortgage Licensing System (NMLS) will be more of a tool for regulators to work across state borders to find companies that are not in accordance with the laws of the state or possibly commit fraud. Regulators will now be interconnected with this one system so that all mortgage companies that are not in compliance in one country may be more likely to get audits in other states. Now it’s time to focus on compliance if the mortgage business has been avoided in the past.