The goal of NMLS is to improve mortgage, consumer finance, debt, and money services industry supervision, heighten communication across states, increase consistency in licensing requirements, and automate processes to the greatest degree possible.
Chapter I—Getting Started on the System
NMLS is designed to replace each state’s existing licensing application forms and manual processes.
Chapters II through V explain specific details of each state licensing form: MU1; MU2; MU3; and MU4.
Chapter II—NMLS Company Form (MU1)
NMLS Company Form (MU1) must be completed by a company applying for a license/registration in one or more states.
Chapter III—NMLS Individual Form (MU2)
The Individual Form (MU2) must accompany the Company or Branch Form. Each individual identified as a Control Person, Qualifying Individual, or a Branch Manager for the applicant, must complete the Individual Form (MU2).
Chapter IV—NMLS Branch Form (MU3)
The Branch Form (MU3) is the branch office information tied to a company’s record. The Branch Forms may only be submitted after a company submits a Company Form (MU1).
Chapter V—NMLS Individual License Form (MU4)
The Individual License Form (MU4) is the Individual Mortgage License / Registration & Consent form.
Chapter VI covers Temporary Authority to Operate which pertains to eligible MLOs who are changing employment from a depository institution to a state-licensed mortgage company, and qualified state-licensed MLOs seeking licensure in another state.
Chapter VI—Temporary Authority to Operate
The Economic Growth, Regulatory Relief, and Consumer Protection Act, 12 U.S.C. 5101 et seq., (S. 2155) was signed into law on May 24, 2018, and became effective November 24, 2019. This amendment to the 2008 SAFE Act permits eligible MLOs to originate loans while completing state specific requirements such as testing and education.
Chapters VII and VIII address the financial reporting requirements for companies, the mortgage and money services businesses call reports, and uniform authorized agent reporting.
Chapter VII—Financial Statement and Net Worth Filing
NMLS enables company account administrators and designated company users to file financial statements (FS) in a single PDF document (8MB file size limit) through the system. Companies are often required to file a financial statement prior to submitting a license application, on an annual basis, or at other designated times during the year.
Chapter VIII—Call Reports
NMLS accommodates both the Mortgage and Money Services Call Reports.
Chapter IX explains electronic surety bonds and guides surety companies through creating their NMLS accounts and creating bonds for their licensees.
Chapter IX—NMLS Electronic Surety Bond (ESB)
Many state laws or regulations require financial services licensees to obtain a surety bond as a condition of licensure.
NMLS enables individuals to select and pay for the National and State Components of the SAFE Mortgage Loan Originator Test.
PE Expiration Policy
In 2016, the NMLS Policy Committee approved a policy that addresses situations in which an individual either:
SAFE Act's Successive Year Rule
The SAFE Act stipulates that a state-licensed MLO “may not take the same approved course in the same or successive years to meet the annual requirements for continuing education.” NMLS has interpreted the term “successive years” to mean two years in a row.
Uniform CE Policy
As a condition for license renewal, an MLO is required to complete at least eight (8) hours of CE in the same year in which a state agency placed the license in an approved status with the following exception:
Applying Administrative Education
To accommodate instances where state requirements and/or NMLS policies creates exceptions to System business rules, NMLS has established a process referred to as Administrative PE or CE (Admin PE or CE).
Appendix 1
Addressing inconsistency between licensee’s NMLS record and state files during Transition.
Glossary
Explanation of Policy Guide terms, license status defintions, and business activity definitions.
Disclosure Explanations Reference—Document Upload
Possible types of documents needed for disclosure questions answered with Yes. Updated: 2013-03-19
Providing Disclosure Explanations
How to provide disclosure explanations in NMLS.
Document Upload Descriptions and Examples
Descriptions and examples of the different types of documentation available for upload to NMLS.
About the Document Library
Document requirements are determined by the specific license requirements outlined in the Agency Guidance section of your MU4 filing. There are no standard documents required for every application; required uploads vary depending on your agency’s licensing guidance.
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