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Important Changes to the NMLS-New License Types & Mortgage Forms

DFI’s use of the NMLS is expanding. Starting in April, Money Transmitter and Currency Exchanger licensees can voluntarily start using the NMLS to manage their records. Check Casher and Payday Lender licensees can join the NMLS in July 2012.

Also in April, two enhancements which will impact all current mortgage licensees. First, the NMLS will be releasing new updated MU forms. Applicants after the April release will use the new forms while existing licensees will need to complete any new part of the MU form when they make a change to their record. Also part of the April release will be the ability for applicants and licensees to upload certain documents to be part of their NMLS record. Documents which could be uploaded range from disclosure explanations to business plans and articles of incorporation.

Read More About NMLS Expansion
Read More About Form Changes

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NMLS Voluntary Expansion-Money Transmitters & Currency Exchangers in April- Check Cashers and Payday Lenders in July

DFI’s use of the NMLS is expanding to include additional, non-mortgage related license types. The expansion will take place in two stages and will be on a voluntary basis for companies. The first stage, beginning April 16, involves Money Transmitters and Currency Exchangers. The second stage starts in July and involves Check Cashers and Payday Lenders.

Scott Jarvis the Director of DFI states, "The Department is pleased to expand its use of NMLS, bringing the efficiencies and improved oversight of NMLS to other financial services industries, specifically Money Transmitters, Currency Exchangers, Check Cashers and Payday Lenders."

What is the NMLS?
NMLS is a secure, web-based system created by state regulators to provide efficiencies in the processing of state licenses and to improve supervision of state regulated industries. Through NMLS, companies maintain a single record which they use to apply for, maintain, and surrender license authorities in one or more states. In addition to the benefit of easier licensing between states, NMLS also provides an easy way to maintain dual licenses. For example, a company that holds a Money Transmitter and a Check Casher license would be able to maintain many parts of both licenses using the same base NMLS record. NMLS began operations on January 2, 2008 and currently fifty-eight state agencies and six federal agencies use the system.

Where do I go to get more information about the NMLS?
You can find more information about the NMLS at http://mortgage.nationwidelicensingsystem.org.

What are the fees for NMLS?
There is no processing fee for submitting a new application or transitioning an existing license onto NMLS. Once you are on the system, NMLS will annually charge a processing fee of $100 per company license and $20 per licensed branch location. Please note that DFI regulatory fees remain the same.

What’s next?
DFI will be communicating additional materials to licensees in the coming months through ListServ, the DFI website, webinar, and emails. If you are considering voluntary participation on the NMLS, or if you have any questions, please contact Ariana Wood at ariana.wood@dfi.wa.gov or by phone at 360-664-7887 to express interest and to get on a list for future direct correspondence.

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NMLS Form Changes

Starting in April 2012, look for changes to the MU forms. The changes are part of the biennial review of the MU forms by the NMLS, with input from the public, licensees and regulators. The impact of this update will be felt mostly by licensees. As you make change(s) to your record after the new release, be aware that you will likely have to complete new fields or answer new disclosure questions added to the form in the release.

The biggest change to the MU forms affects company and branches. The new MU1 and MU3 will feature a more developed Business Activities section which allows you to indicate, by state or jurisdiction, the financial services provided at that location. Another big enhancement is the ability for applicants and licensees to upload documents, similar to the process for financial statements.

For more information and a PDF copy of the new forms
see the NMLS page: New Forms April 2012