NMLS Modernization: Purpose and Major Components
The National Mortgage Licensing System (NMLS) serves as the system of record for state agencies to license companies, branches, and individuals in various non-depository industries such as mortgage, money services businesses, consumer lending, and debt collection. Launched in 2008, NMLS aims to enhance coordination, information sharing among regulators, and provide improved efficiencies for the industry, ultimately enhancing consumer protection. The modernization of NMLS is being planned based on quality assessments, future development needs, and strategic business objectives.
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Presentation Transcript
NMLS MODERNIZATION Highlights of Purpose and Major Components
What is NMLS? NMLS is the system of record for state agencies to license companies, branches and individuals in the following non-depository industries: mortgage, money services businesses, consumer lending and debt collection. Launched in January 2008 by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR). State Regulatory Registry LLC (SRR), a CSBS subsidiary, owns and operates NMLS. 61 state agencies manage 565 licenses through NMLS. NMLS registers depository institutions, subsidiaries, and mortgage loan originators (MLOs) under the SAFE Act and CFPB Regulation G. Over 400,000 loan originators registered in the NMLS Federal Registry. For more information, please visit the NMLS Resource Center
What is the goal of NMLS? The goal of NMLS is to employ the benefits of local, state- based financial services regulation on a nationwide platform that provides for improved coordination and information sharing among regulators, increased efficiencies for industry, and enhanced consumer protection.
Why NMLS Modernization? SRR plans to modernize NMLS based on several factors: A quality assessment of the NMLS software and architecture conducted by two separate software quality firms The need for a more robust system to support NMLS future development roadmap A review of SRR s strategic business objectives SRR now desires to issue a formal RFP for the modernization of NMLS.
NMLS To Date 61 state agencies manage 565 licenses through NMLS. 34 agencies managing 167 non-mortgage licenses authorities Another 6 agencies plan on adding 13 additional non- mortgage license authorities to NMLS by March of 2016. States manage 2,142 checklists through the NMLS Resource Center
SAFE Act and NMLS In 2008, the federal SAFE Act gave states one year to pass legislation requiring the licensure of mortgage loan originators through NMLS. NMLS also contracts with the Consumer Financial Protection Bureau (CFPB) to provide the NMLS Federal Registry for the registration of all depository institution loan originators.
Whos Involved in NMLS Conference of State Bank Supervisors (CSBS) American Association of Residential Mortgage Regulators (AARMR) Money Transmitter Regulator Association (MTRA) National Association of Consumer Credit Administrators (NACCA) North American Collection Agency Regulatory Association (NACARA) State Licensing: 61 state regulatory agencies Federal Registration: Bureau of Consumer Financial Protection (CFPB) Federal Reserve, OCC, NCUA, FDIC, Farm Credit Administration 8
Who is in NMLS? 2013 2014 State licensed Entities Licenses Entities Licenses Companies 18,993 39,903 19,882 44,020 Branches 23,467 43,066 25,583 49,904 MLOs 130,311 331,351 131,725 359,992 Federally Registered 2013 2014 Institutions 10,848 10,566 MLOs 404,239 398,492
Industries on NMLS 2,000 1,783 1,800 1,600 1,400 1,200 1,086 1,052 1,000 870 800 717 684 600 476 462 414 380 336 400 200 0 Consumer loan lending Payday lending - storefront Consumer loan brokering Consumer loan servicing Sales finance company activities - motor vehicles Title lending Third party debt collection First party debt collection Check cashing Selling money orders Electronic money transmitting Money Services Consumer Finance Debt
