Providing Disclosure Explanations
When an individual logs into their NMLS account and creates a filing for the first time, as part of the required information, the disclosure questions must be completed. A disclosure question link can be found on the left navigation panel.
All disclosure questions must be answered.
MU2 and MU4 individuals must provide detailed explanations for all disclosure questions answered yes and may choose to provide detailed explanations to clarify a no answer to a disclosure question.
About this task
An explanation is intended to provide regulators with additional information necessary for the proper evaluation of a license application.
An explanation can only be used to provide information for a single event (e.g., court order, regulatory action, civil settlement). If users have multiple events that require disclosure, they should complete multiple explanations. While each explanation should be tied to a single event, an explanation can be associated to one or more disclosure questions.
- Event Title
- A brief statement describing what event the explanation relates to (e.g. Felony, Cease and Desist Order).
- Disposition
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The current status of the event for which the explanation is being provided. You can choose from a drop-down menu including the following options:
- Pending
- On Appeal
- Final
- Open
- Closed
- Other
If you select Other, a Disposition Description must be provided.
- Event Explanation Detail (4,000 character limit)
- Provide a detailed description of the event including the date. This field must be completed in order to submit an explanation. If you chose to provide a supporting document that contains all relevant details, you will need to upload that document as a PDF (see Supporting Document below) and provide some form of an explanation in this field. The explanation provided should be specific to the event you are describing related to the disclosure question. The explanation should provide regulators with enough information regarding the event in order for them to complete their review.
- Supporting Document
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- You may upload any applicable supporting documentation by browsing for the document on your computer.
- Supporting documentation should include official documents that relate to an event, (i.e. court order, disposition, administrative action.)
- Do not combine documents related to multiple events into a single supporting document.
- Only a single PDF can be uploaded for an event. If you have multiple documents for a single event, you should combine them into a single PDF file.
- A PDF file is not required by the system in order to submit an explanation, though your regulator may subsequently require provision of some form of documentation. Examples of documents may include: Criminal or Civil Court Documents, Administrative Orders, and other public documents. Please contact your regulator if you have specific questions regarding what documents should be provided.
Guidance on how to interpret each question and format explanations is available in the NMLS Policy Guide. In general, you should clearly describe the event, include dates and locations, and explain the outcome and current status.
Documents should be named clearly and uploaded in the Disclosure Explanations section of your MU2 or MU4 filing. For formatting and examples of acceptable file names, see Appendix 4: Document Upload Descriptions and Examples herein.