Failed Payment and Payment Dispute Policy

Background

NMLS (Nationwide Mortgage Licensing System or System) processes payments through the System that include funds for state agency fees as well as NMLS Processing Fees. State agency fees are passed to the relevant state agency. For a list of NMLS Processing Fees, see NMLS Processing Fees.

NMLS does not issue refunds for state agency or NMLS Processing Fees. Refund requests for state agency fees should be directed to the relevant state agency. NMLS Processing Fees are non-refundable. NMLS users are encouraged to use the tools and resources available on the NMLS Resource Center to understand state agency requirements prior to taking actions in NMLS that incur fees.

Users of NMLS are obligated for the NMLS Processing Fees incurred, regardless of failure of NMLS, the ACH transaction, or credit card transaction. The information in this document outlines NMLS policy for collecting failed payments.

Policy

ACH Transactions

When NMLS receives notification of an ACH return after funds were already disbursed to a state agency, the state agency, company, institution and/or mortgage loan originator (MLO) will be notified of the return. The company, institution and/or MLO will be afforded a reasonable opportunity to successfully remit the applicable payment(s) within NMLS (effective July 28, 2014). If the institution and/or MLO does not remit payment within the designated time period, access for the invoice creator’s NMLS account will be temporarily restricted until payment is received.

Credit Card Transactions

In instances where NMLS processes payments which are then disputed with the credit card company, NMLS provides the appropriate response to the credit card company indicating whether or not the charge is legitimate.

In the case of a dispute of an NMLS Processing Fee that is determined by NMLS to be legitimate, the payee will be invoiced, notified and afforded a reasonable opportunity to successfully remit the applicable payment(s) within NMLS. If the payee does not remit payment within the designated time period, the original invoice creator’s NMLS account will be temporarily restricted until payment is received.

Disputes concerning state agency fees should be discussed with the relevant state regulator.