Identify Indirect Owners

Use the Indirect Owners section of the Company (MU1) Form to disclose any individuals or entities that indirectly own or control 25% or more of the applicant.

About this task

Companies must disclose any individual or legal entity that indirectly owns or controls 25% or more of the applicant. This includes entities such as trusts, partnerships, and holding companies that exist between the applicant and the ultimate owner or controller. Disclosure is not required beyond the point at which the ownership chain reaches a public reporting company, a federally regulated depository institution, a bank holding company, or a natural person.

If no individuals or entities meet this threshold, you may skip this section.

For more detailed ownership criteria, refer to the NMLS Policy Guide.

Procedure

  1. Navigate to the NMLS Login page.
  2. Select Filing > Company (MU1) from the menu.
    The Company Filing screen is displayed.
  3. Select Create New Filing.
    The Company Form (MU1) opens, beginning on the Business Activities screen.
  4. Click the Indirect Owners section in the navigation panel of the MU1 filing.
  5. To add an individual indirect owner, click Add Individual.
    Note: Search for the individual first using name or NMLS ID. If the individual is not found, click Create Individual and complete the required information.
    Tip: If you designate an indirect owner as a control person, they must have their own NMLS account and complete the Individual (MU2) Form. After submission, the individual must also complete the MU2 attestation process. For more information, see Managing Individual MU2 Filings (Company).
  6. To add a company indirect owner, click Add Company.
    Note: Search for the company first using name or NMLS ID. If the company is not found, click New Direct Owner and complete the required information.
  7. Enter ownership and control information for each indirect owner.
    Note: Required fields include ownership percentage, whether the entity is a control person, and the entity in which interest is held. The total ownership percentages may not exceed 100%.
  8. To edit or remove an indirect owner, use the Edit or Delete icons.
    Note: To remove an owner, first amend their ownership percentage to 0% and provide an effective date. You cannot use a past date.