Calling all Mortgage Professionals: 10 Tips for Stress-Free NMLS Mortgage Licensing

a man in a business suit is touching the word compliance

For mortgage professionals preparing for the annual license renewal process through NMLS, or Nationwide Multistate Licensing System and Registry can be a nightmare. The NMLS is a complex system. It’s important for both companies and individuals to keep their licensure properly updated, as well as minimizing deficiencies to ensure a quick and easy experience. With COVID 19, the NMLS is sure to be busy and questions are not going to be answered promptly so plan ahead.

NMLS Licensing Tips

Here at Lakeside Title, we’d like to pass along 10 tips to make this renewal season the easiest one yet:

1. Timing is everything. The renewal process is long and complex, so planning should begin — at a minimum — well before Thanksgiving even perhaps as early as the summer.

2. Having trouble accessing necessary resources and documents? It could be your web browser. The NMLS website’s technical requirements make it inaccessible using outdated Internet programs, and this goes doubly if remote external assistance from Mortgage Loan Originators or Control Persons is needed.

3. Ensure that any open deficiencies are closed well prior to filing the renewal request. Even if the deficiency is resolved before the renewal is actually processed, the lingering record can cause confusion or even a challenge for renewal eligibility.

4. Many states have individual regulations that go beyond simply filing a renewal request online. Make sure to check carefully for any documentation required to be submitted outside of NMLS, as well as its associated due dates.

5. Control Persons (individuals in positions of power such as directors, CEOs, or general partners) must now undergo Criminal Background Checks — which in turn requires both MU1 and MU2 attestation filings. Be sure to allocate time for both of these tasks.

6. Also necessary for Control Persons is a current credit report, which requires a Control Person MU1 submission and MU2 attestation.

7. Another instance where starting early pays off: Control Persons should be diligent about ensuring branch managers and qualified individuals complete the necessary continuing education and Mortgage Loan Origination renewals. Failure to do so on the part of the individual could result in the main branch or whole organization’s renewal being delayed.

8. On a similar note, some continuing education providers take up to seven days to report course completion to the NMLS. Since many states don’t even allow the renewal to be submitted without this accreditation, make sure to plan accordingly.

9. Some states require that paper documentation of surety bonds be converted into the digital format of Electronic Surety Bonds, or ESBs. The NMLS website has an adoption map and date table for those unsure as to whether they are in an affected state or not.

10. Make sure to read the fine print. NMLS renewal is a complex process that requires much effort before the “submit” button can be pressed, and it’s a popular misconception that the final deadline is January 31. Many states’ individual statutes actually require an earlier submission to allow for processing time. And if the renewal isn’t approved by January 1, all activity must stop — period.

Choose Lakeside Title for your Transaction

If you’re a mortgage professional that has struggled without access to a title company, or a real estate agent working with clients in the industry, reach out to Lakeside Title today. We help companies with all of the title work they need to expand or move their business.

Take a look at our services for businesses or contact us to start a title search.

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