| NMLS is a secure, internet-based licensing system for the residential mortgage industry. The system has been built and is maintained by the Financial Industry Regulatory Authority (FINRA), which is the largest independent regulator for all securities firms doing business in the United States. Created in July 2007 through the consolidation of the National Association of Securities Dealers (NASD) and the member regulation, enforcement and arbitration functions of the New York Stock Exchange, FINRA provides both regulatory and compliance and technology-based services.
NMLS itself does not grant or deny license authority. NMLS administers the licensing process of mortgage originators in all participating states, the District of Columbia and U.S. territories. In these jurisdictions, NMLS is the official and sole system for individuals and companies seeking to apply for, amend, renew, and surrender licenses managed in the NMLS on behalf of the jurisdiction’s governmental agencies. Regulators use NMLS to process and manage licenses within their jurisdictions. In the NMLS system, a single licensing record is created and maintained for each licensed company, branch, loan officer, and control person. This single record is used by regulators to evaluate license applications and renewals.
By providing a centralized and standardized system for mortgage licensing, NMLS streamlines the licensing process for both regulatory agencies and the mortgage industry. Indirectly, NMLS serves the mission of CSBS by maintaining the viability of autonomous state regulation of state-chartered mortgage originators. |