For newer entrants to the mortgage industry it might be helpful to clarify the NMLS is not a state regulator. They do not make or pass mortgage laws. Congress and the state legislatures do. The NMLS peforms the role of aggregator of mortgage participants information, for the purpose of then streamlining that data to each state regulator. They were a creation of the SAFE Act as a mechanism to track and manage companies and individuals.
Title V of P.L. 110-289, the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (“SAFE Act”), was passed on July 30, 2008. The federal law gave states one year to pass legislation requiring the licensure of mortgage loan originators according to national standards and the participation of state agencies on the Nationwide Mortgage Licensing System and Registry (NMLS). The name was subsequently changed to Nationwide MULTISTATE Licensing System & Registry.
Getting licensed as a lender, broker or mortgage loan originator is not always an easy path. While the licensing requirements are set out by state, meeting all of the requirements and passing the test can be overwhelming. If you are getting licensed or hiring new “mortgage loan originators” or “independent contractor processors” who must also be licensed, the NMLS provides resources that can be a challenge to find. We thought it might be helpful to provide some links to commonly asked questions:
All participants need to take note that in addition to mortgage state-licensing laws, it is critical that all mortgage participants know and comply with all federal and state labor and tax laws as they relate to recruiting and hiring of employees.
The National Test Content Outline – provides a detailed outline of everything test takes are required to know.
The MLO Testing Handbook – provides detailed information about the testing process.
State-by-State Licensing Requirements – for mortgage brokers, mortgage lenders and mortgage loan originators.
Temporary Authority to Operate – for Registered originators seeking state-licensing or currently state-licensed originators seeking licensing in a new state.
General Resources and Support – getting started, quick guides and help contact.
SAFE Mortgage Licensing Act of 2008 – federal legislation, summaries, model state law and SAFE Implementation.
Course Providers – education providers, course offerings, specific state education PE & CE requirements.
Federal Registry Resource Center – tools and guides for depository registration requirements
For more information: Email: firstname.lastname@example.org (866) 256-3766.