NMLS MODERNIZATIONHighlights of Purpose and Major Components

What is NMLS?• NMLS is the system of record for state agencies to license 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

The goal of NMLS is to employ the benefits of local, state-based 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.

What is the goal of NMLS?

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

8

• 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

Who is in NMLS?

Federally Registered 2013 2014

Institutions 10,848 10,566

MLOs 404,239 398,492

State licensed Entities Licenses Entities Licenses

Companies 18,993 39,903 19,882 44,020

Branches 23,467 43,066 25,583 49,904

MLOs 130,311 331,351 131,725 359,992

2013 2014

Industries on NMLS

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1,086

870

462414 380 336

1,052

476

1,783

717 684

Consumer Finance Debt Money Services