The National Mortgage Licensing System (NMLS) is a web-based system that provides an
electronic platform for the registration, licensing, and renewal of state-licensed mortgage
professionals. Depending on your business, whether you are a sales financing company or a
money cash advance company, you might need to register with the NMLS.
What Benefits Does the NMLS Provide?
The NMLS is maintained by the Conference of State Bank Supervisors (CSBS) and the
American Association of Residential Mortgage Regulators (AARMR). It aims to improve the
quality of residential mortgage services by increasing accountability and transparency in the
mortgage industry. The NMLS requires all mortgage companies, mortgage loan originators, and
other mortgage-related businesses to register with the system and maintain their information up
to date. Each state has its own set of regulations and requirements, and the NMLS allows
businesses to meet the licensing requirements of multiple states through a single registration
process.
The NMLS also provides a database of all registered mortgage companies and loan originators,
which is available to the public, allowing consumers to check the status of a mortgage company
or loan originator’s license. It is important to note that the NMLS registration is just one of the
regulatory requirements for the Sales Finance Company license in Florida, there are other
requirements such as obtaining a surety bond and compliance with state and federal laws that are
also required.
What Are the Requirements to Register with the NMLS?
To register with the National Mortgage Licensing System (NMLS), a business must meet certain
requirements set by the NMLS and the individual state regulatory agencies. These requirements
vary by state, but generally include the following: (1) Company Information; (2) background
checks; (3) financial requirements; (4) education and training; (5) bond or surety; (6) disclosure
and advertising; (7) compliance with state and federal laws.
The business must provide information about the company, including its legal name, physical
address, and business structure. All individuals with an ownership or control interest in the
business, as well as all employees who will be involved in the mortgage business, must submit to
background checks. On top of background checks, the business must demonstrate that it has the
financial resources to conduct its mortgage business. The business and its employees must also
complete certain education and training requirements. The business must obtain a bond or surety
in the amount required by the state. The company must provide accurate and complete
disclosures to potential customers and follow regulations on advertising their services. The
business must finally comply with all state and federal laws, including consumer protection laws.
What Is the Difference Between NMLS and a Mortgage Loan Originator?
The main difference between these titles is that Mortgage Brokers are employed by a Sponsoring
Broker, while Mortgage Loan Originators and Officers are employed by a bank or mortgage
company. Both Mortgage Brokers and MLOs are licensed nationally by the Nationwide
Multistate Licensing System (NMLS).
