NMLS and licenses for mortgage lending

An NMLS license: what is it?

The NMLS system does not confer or withhold licensing authorization. Instead, by offering a uniform procedure and tool for all participating states, it streamlines the process of applying for a mortgage license in several jurisdictions. Lenders and originators can report authorized agents, take examinations, pay fees, renew licenses, and more using the NMLS portal.

An NMLS number: what is it?

The number that the NMLS permanently assigns to every business, branch, and individual that keeps an account in the system is known as the NMLS unique identification.

The majority of state mortgage licensing rules require mortgage loan originators to provide this identity on different documents, including business cards. It was mandated by the SAFE act.

Note: Upon creating an account in NMLS, a firm or individual is automatically granted a unique NMLS identification number. But until a state license or federal registration is obtained, the identify is not valid.

What credentials does one need to obtain a mortgage lending license?

According to the SAFE Act, home loan originators and lenders with state licenses must complete continuing education and pre-licensure courses in addition to passing a written qualifying exam. In accordance with the Act, they must also grant permission for an independent credit report and provide their fingerprints to the NMLS for an FBI background check.

States could have further criteria in addition to the NMLS application requirements. A state-by-state and license-type checklist is provided by the system. For instance, applicants to the Montana Mortgage Broker Company must get a surety bond in the amount of up to $100,000. Applicants for Pennsylvania Money Transmitter Company must provide fingerprint cards for each control person’s criminal background check. Additionally, a physical copy application for a Massachusetts collection agency license must be sent to the Division of Banks along with a bond, financial statements, and notarized papers bearing the original signatures of all parties.

Note: State laws vary regarding whether state-licensed mortgage loan lenders or originators need to pass the SAFE Mortgage Test, finish education programs, and finish background checks. However, the SAFE Act mandates that NMLS carry out specific duties related to education services and background checks.

How may one apply for a mortgage license via NMLS?

Go to the NMLS State Licensing Requirements page for your state to study the prerequisites before applying for a mortgage license through NMLS. The page lists the possible supporting documents you must upload and submit to the state agency.

All state-licensed mortgage loan originators and certain people have to pass the National SAFE MLO exam, finish pre-licensure training, and submit a credit and criminal background check before they may submit an application. The details of each of these requirements are available from NMLS.

Make sure you work with your company to coordinate your application. You or your firm must fill out Individual Form (MU4) and pay related costs if your business is registered with NMLS or through the system in a state. If your organization is filling out your MU4 form, wait for their approval before moving further.

Make sure all of the information is correct, comprehensive, and represents the relevant legal papers when you create an account in NMLS. One or more duplicate accounts may arise from inaccuracies, which can be expensive to correct.

Note: You must provide your employer access to your NMLS account if you currently have one due to a state license or federal registration. (Your NMLS ID number and login credentials won’t be altered.)

Visit the resource center after creating an account to get printable forms to help with your application. Applications and some attachments could be submitted online. Nevertheless, within five days of completing your application, state- and industry-specific attachments must be forwarded to the relevant state agency together with the NMLS checklist.