NMLS Update Coming Today!

Monday, October 22, 2012 11:18:00 AM

 

Starting today, Nationwide Mortgage Licensing System and Registry (NMLS) users will need to add additional details when information on any disciplinary, enforcement, or related actions taken against a mortgage loan originator (MLO) is entered into the database. Until now, the NMLS has only required users to disclose whether they have been subject to disciplinary or enforcement actions.

Going forward, MLOs that have been subject to disciplinary action will need to detail:

• The type of action taken;

• The name of the authority that took the action; and

• The date of the action.

• MLOs will also need to provide official documentation of any actions taken, such as court orders or letters from regulatory authorities, in .pdf format.

The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) requires credit union MLOs and their employing institutions to register with the NMLS, which became active in early 2011. The NMLS registry is intended to increase consumer protection and to help financial regulators coordinate and share mortgage originator information.

Registered MLOs are given a "unique identifier," which is the identification number associated with the MLO within the NMLS. The unique identifier remains the same, even when the MLO changes employment, moves, or changes his or her name, and the identifier tracks the MLO and facilitates public access to the employment history and any disciplinary or enforcement actions that have been initiated against the individual. All NMLS accounts for financial institutions must be renewed on an annual basis.

Credit unions and other MLOs are required to ensure that their mortgage loan originators are properly registered and prohibit any employees who are not registered from performing any residential mortgage loan origination duties.

Check out the NMLS site by clicking here

Source: CUNA News Now, October 22, 2012

Comments

Comments are closed on this post.