Industry News

Nationwide licensing system for mortgage brokers debuts

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A nationwide licensing system that's intended to help states track mortgage brokers and lenders under their jurisdiction launched today with seven states participating and 31 more expected to join by the end of next year. The Nationwide Mortgage Licensing System (NMLS) creates a single file for each state-regulated mortgage lender, broker, branch and loan originator, simplifying the process of licensing and monitoring companies and individuals who do business in more than one state. First proposed in 2004, the NMLS launched today with New York, Massachusetts, Rhode Island, Idaho, Iowa, Kentucky and Nebraska on board. All told, 38 states, plus Washington, D.C., and Puerto Rico, have committed to participate in the system by the end of 2009. Developed by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators, the system has drawn fire from the National Association of Mortgage Brokers, whose members have complained that it excludes ...