For those located in states that have already transformed the Nationwide Mortgage Licensing System (NMLS), you are probably already intimately familiar with the new NMLS. However, if you are not licensed in one of the 23 states that have moved out or are in the process of change in the NMLS, you may be asking yourself, “What exactly is the Nationwide Mortgage licensing system?”
There are many different rumors going around. Some are saying that the Nationwide Mortgage Licensing System (NMLS) the authorization for each individual states. Others are saying that NMLS will allow you to get a loan originator license to be able to originate in all states. While some of the rumors out there have an element of truth in them, we want to know the real truth. So it NMLS?
The NMLS is a database. That’s it. It does not change any Mortgage licensing requirements. It is not from what countries need to get a license. It also does not eliminate the need to obtain permission in each state. The NMLS only works as a central repository for intelligence for the purchase of state mortgage license. The only current benefits NMLS is that when you apply for a license in a new state, you do not have to fill out a new form for every new domain registration information NMLS collects in it’s database. This is the only benefit at this time. Since each state has access to NMLS database, you only need to change the record to show that you want to apply for a license in the new state, and the state has the access to information. Although NMLS collects a lot of information, it does not collect everything. Each state still requires numerous documents to be sent on paper outside NMLS to the states themselves. The only way that the licensing process will be easier if the state really change their laws to make the process more streamlined, less expensive, and more similar to other countries.
The NMLS does have a few other proposed benefits that have not been put in place yet. Over the next 2 to 3 years, NMLS proposes to do and continuing education requirements for each state more mutual. Basically, NMLS plans to start measuring at the end of courses of education and plans to work with the state, so if you take education courses for one state, it will witness the counting for the other states you need education. However, this return must be approved by state legislators before states can allow reciprocity between courses.
To make it as simple as possible, NMLS is a way to reduce the amount of paperwork that needs to be duplicated for each state does not change any laws of each state. For NMLS working as it was intended, each state needs to start working together better to prevent duplication and overwhelming time-consuming process licensed in every state.