Conference of State Bank Supervisors Inc

CSBS, ON BEHALF OF STATE REGULATORS, OWNS AND OPERATES THE NATIONWIDE MULTISTATE LICENSING SYSTEM (NMLS), AN ONLINE LICENSING, REGISTRATION AND SUPERVISORY PLATFORM THAT BRINGS REGULATORY EFFICIENCY AND ACCOUNTABILITY TO THE MORTGAGE INDUSTRY AND OTHER NONBANK FINANCIAL SERVICES PROVIDERS.NMLS BEGAN OPERATIONS ON JAN. 2, 2008. CONGRESS RECOGNIZED THE VALUE OF THE NEW SYSTEM AND THAT JULY CODIFIED NMLS IN THE SECURE AND FAIR ENFORCEMENT FOR MORTGAGE LICENSING ACT OF 2008, ENACTED TO ENHANCE CONSUMER PROTECTION AND REDUCE FRAUD THROUGH REQUIRED MINIMUM STANDARDS FOR THE LICENSING AND REGISTRATION OF STATE- LICENSED MLOS. KNOWN AS THE "SAFE ACT," THE LAW CALLS ON THE STATES TO IMPLEMENT AND ENFORCE THESE STANDARDS, REQUIRING MLOS TO HAVE AT LEAST 20 HOURS OF PRE-LICENSING EDUCATION AND AN ANNUAL EIGHT HOURS OF CONTINUING EDUCATION.STATE-LICENSED FINANCIAL SERVICES COMPANIES AND MORTGAGE LOAN ORIGINATORS (MLOS) MUST MAINTAIN AN ACTIVE LICENSE THROUGH NMLS, WHILE FEDERALLY REGULATED DEPOSITORY INSTITUTIONS (E.G., BANKS AND CREDIT UNIONS) AND THE MLOS THEY EMPLOY MUST MAINTAIN AN ACTIVE REGISTRATION. CONGRESS MANDATES THAT STATE LICENSEES AND FEDERAL REGISTRANTS MUST RENEW THEIR MORTGAGE STATE LICENSE AND FEDERAL REGISTRATION, RESPECTIVELY, ON AN ANNUAL BASIS.IN 2022, NMLS WAS USED BY NEARLY 700,000 COMPANIES AND INDIVIDUALS:MORE THAN 308,000 STATE-LICENSED COMPANIES AND INDIVIDUALS MAINTAINED THEIR LICENSES IN NMLS. THE MAJORITY OF THESE COMPANIES ARE FROM THE MORTGAGE INDUSTRY, WHILE THE REMAINING ONE-THIRD ARE FROM THE MONEY SERVICES, CONSUMER FINANCE AND DEBT INDUSTRIES. MORE THAN 387,000 ADDITIONAL MLOS WORKING IN DEPOSITORY INSTITUTIONS MAINTAINED THEIR REGISTRATION THROUGH NMLS. AS NMLS APPROACHES ITS 15-YEAR MARK, WE CONTINUE TO FOCUS ON WAYS TO IMPROVE THE SYSTEM'S FUNCTIONALITY AND USER EXPERIENCE. IN 2021, WE SUCCESSFULLY MOVED THE NMLS INFRASTRUCTURE FROM AN ON-PREMISES DATA CENTER TO A CLOUD ENVIRONMENT, A NECESSARY CHANGE.