NMLS MODERNIZATION
Highlights of Purpose and Major Components
What is NMLS?
• NMLS is the system of record for state agencies to license
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companies, branches and individuals in the following non-depository
industries: mortgage, money services businesses, consumer lending
and debt collection.
Launched in January 2008 by the Conference of State Bank
Supervisors (CSBS) and the American Association of Residential
Mortgage Regulators (AARMR).
State Regulatory Registry LLC (SRR), a CSBS subsidiary, owns and
operates NMLS.
61 state agencies manage 565 licenses through NMLS.
NMLS registers depository institutions, subsidiaries, and mortgage
loan originators (MLOs) under the SAFE Act and CFPB Regulation G.
Over 400,000 loan originators registered in the NMLS Federal
Registry.
• For more information, please visit the NMLS Resource Center
Governance Organization of NMLS
What is the goal of NMLS?
The goal of NMLS is to employ the benefits of local, statebased financial services regulation on a nationwide
platform that provides for improved coordination and
information sharing among regulators, increased
efficiencies for industry, and enhanced consumer
protection.
Why NMLS Modernization?
• SRR plans to modernize NMLS based on several factors:
• A quality assessment of the NMLS software and architecture
conducted by two separate software quality firms
• The need for a more robust system to support NMLS’ future
development roadmap
• A review of SRR’s strategic business objectives
• SRR now desires to issue a formal RFP for the
modernization of NMLS.
NMLS To Date
• 61 state agencies manage 565 licenses through NMLS.
• 34 agencies managing 167 non-mortgage licenses authorities
• Another 6 agencies plan on adding 13 additional non-
mortgage license authorities to NMLS by March of 2016.
• States manage 2,142 checklists through the NMLS
Resource Center
SAFE Act and NMLS
• In 2008, the federal SAFE Act gave states one year to
pass legislation requiring the licensure of mortgage loan
originators through NMLS.
• NMLS also contracts with the Consumer Financial
Protection Bureau (CFPB) to provide the NMLS Federal
Registry for the registration of all depository institution
loan originators.
Who’s Involved in NMLS
• Conference of State Bank Supervisors (CSBS)
• American Association of Residential Mortgage Regulators (AARMR)
• Money Transmitter Regulator Association (MTRA)
• National Association of Consumer Credit Administrators (NACCA)
• North American Collection Agency Regulatory Association (NACARA)
State Licensing:
• 61 state regulatory agencies
Federal Registration:
• Bureau of Consumer Financial Protection (CFPB)
• Federal Reserve, OCC, NCUA, FDIC, Farm Credit Administration
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Who is in NMLS?
2013
State licensed
2014
Entities
Licenses
Entities
Licenses
Companies
18,993
39,903
19,882
44,020
Branches
23,467
43,066
25,583
49,904
130,311
331,351
131,725
359,992
MLOs
Federally Registered
Institutions
MLOs
2013
2014
10,848
10,566
404,239
398,492
Industries on NMLS
2,000
1,783
1,800
1,600
1,400
1,200
1,086
1,000
1,052
870
800
600
462
414
400
717
684
Selling
money
orders
Electronic
money
transmitting
476
380
336
200
0
Consumer
loan lending
Payday
lending storefront
Consumer
loan
brokering
Consumer Sales finance Title lending Third party
loan
company
debt
servicing
activities collection
motor
vehicles
Consumer Finance
First party
debt
collection
Debt
Check
cashing
Money Services