NATIONWIDE MORTGAGE LICENSING SYSTEM

1
NATIONWIDE MORTGAGE LICENSING SYSTEM

• Implementation of SAFE Act Legislation

MBA Quality Assurance and Residential
State Regulatory Registry
LLC Underwriting Conference
a CSBS company September 24, 2009
2
SAFE Act

• Four Elements to the Mandate for Nationwide
  Licensing and Registration System for MLOs
• Enactment of State Legislation
• Federal Banking Agency Registration Rules
• HUD Supervision and Oversight
• NMLS Functionality

3
SAFE State Agency Mandates

• All states must have a system of licensing in
  place for residential mortgage loan originators
  by July 31, 2009
• System must meet SAFE definitions and minimum
  standards
• All states must license mortgage loan originators
  through NMLS

4
SAFE Federal Banking Agency Mandates

• OCC, Federal Reserve, FDIC, OTS, NCUA, FCA
  (through FFIEC)
• Must develop/maintain a system for registering
  loan originators in NMLS
• Registration requires
• Criminal background check
• Personal history and experience
• Shall coordinate with NMLS in assigning unique ID
  .

5
State SAFE Legislative Activity
Washington
Maine
Montana
Vermont
North Dakota
Minnesota
Oregon
New Hampshire
Idaho
Wisconsin
Massachusetts
South Dakota
New York
Michigan
Rhode Island
Wyoming
Connecticut
Iowa
Pennsylvania
New Jersey
Nebraska
Nevada
Indiana (DFI SOS)
Ohio
Delaware
Utah
Illinois
Maryland
West
(DFI DRE)
Colorado
Virginia
District of Columbia
California (DFI, DOC DRE)
Virginia
Kansas
Missouri
Kentucky
North
Carolina
Tennessee
Oklahoma
Arizona
South
Arkansas
New Mexico
Carolina
Mississippi
Georgia
Alabama
Hawaii
Texas (OCCC SML)
Louisiana
Florida
Alaska
Virgin Islands
Puerto Rico
6
Next Steps

• HUD
• Review of State Laws
• Regulations
• Ongoing State/Federal Partnership
• Implementation/Transition for States and NMLS
• Staggered Effective Dates

7
Next Steps Adoption of Regulations

• Integration into existing rules
• SAFE specific or mandated issues
• Definitions
• Revocation
• License Reinstatement
• Surety Bonds
• Education/Testing
• Unique Identifier
• Challenge Process

8
NMLS

• Result of State Efforts and Accomplishments
• NMLS uniform licensing framework
• Recognition of NMLS by federal agencies
• Federal banking agencies to use for RMLOs
  (proposed)
• HUD to use for SAFE, if necessary
• FHFAs directive on use of NMLS ID s on
  mortgage
• application form (1003)

9
Participation in NMLS

• 32 states and territories are participating on
  the NMLS
• 46 states and territories by January 2010
• 90 of states are scheduled to be participating
  in NMLS by January 2010, just two years after
  launch of the system
• 70,835 mortgage loan originators in 32 states
• 11,813 mortgage broker and lender companies in 32
  states
• www.stateregulatoryregistry.com/NMLS

10
Implementation

• Use of NMLS will drive uniformity and consistency
• Development Priorities Shifted by SAFE Act
• License Renewals
• Financial Statements
• Education and Testing Requirements
• Mortgage Call Reports
• Fingerprint/Criminal Background Checks
• Credit Checks
• Public Access to Originator Information

11
Education and Testing for Licensed Loan
Originators

• NMLS developed SAFE Mortgage Loan Originator Test
  - national component available July 30, 2009
• State test available in AZ, IA, ID, LA, MA, NH,
  NC, PA, RI, VT, and WA
• All state component tests completed by end of
  2010
• As of mid-September, 2,415 enrollments 90 course
  providers and 70 pre-license education courses
  approved

12
Future NMLS Functionality

• Registered Exempt Company
• Public access, Jan 2010 (Phase One)
• Criminal background checks, Jan 2010
• Credit checks, 2010
• Call reports (annual reports), 2010
• Registered MLOs (proposed)
• B2B NMLS access
• Surety bond tracking
• Complaint tracking

13
NMLS User Conference Training
Details and registration information are
available on the NMLS Resource Center Calendar
of Events. www.stateregulatoryregistry.org/NMLS