Providing Disclosure Explanations

Provide explanations for all disclosure questions answered “Yes,” optionally clarify selected “No” responses, and manage supporting documentation in the MU1 filing.

About this task

Use the Disclosure Explanations section of the Company (MU1) Form to provide an explanation for each disclosure question answered Yes. You may also provide an explanation to clarify certain No responses. Each explanation should describe a single event (for example, a court order, regulatory action, or civil settlement). A single explanation can be associated with multiple disclosure questions, and multiple explanations can be associated with a single question. Only one PDF supporting file may be uploaded per event; if multiple documents exist for an event, combine them into one PDF before upload. For state‑specific expectations (including when explanations or documentation are required), see the State Licensing Checklist Compiler. For authoritative definitions and requirements, see 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. Click Create New Filing.
    The Company Form (MU1) opens, beginning on the Business Activities screen.
  4. Open the Disclosure Explanations section.
  5. To add an explanation for a Yes response:
    1. Click Add Explanation for “Yes” Responses.
    2. Complete required fields, including Brief Description of Explanation, Disposition (and Disposition Description if Other), and Event Explanation Detail.
      Note: The Event Explanation Detail must clearly describe the single event and include the date. Text may be proofed using the spell‑check control, if available.
    3. Select the applicable disclosure questions for this event in Applicable Questions.
    4. (Optional) Click Browse to upload one PDF Supporting File for the event.
      Note: Do not combine documentation for multiple events into one file. If multiple documents exist for a single event, combine them into one PDF and upload that file.
    5. Click Save.
  6. To add an explanation for a No response:
    1. Click Add Explanation for “No” Responses.
    2. Complete required fields, including Brief Description of Explanation, Disposition (and Disposition Description if Other), and Event Explanation Detail.
    3. Select the applicable Disclosure Question Category(ies).
    4. (Optional) Upload a single PDF supporting file, if needed.
    5. Click Save.
  7. To update an existing explanation:
    1. Click the Edit icon next to the explanation.
    2. Click Amend, update fields, and enter an Amendment Reason (required).
    3. Click Save.
  8. To delete an existing explanation:
    1. Click the Edit icon next to the explanation and then click Delete.
    2. Enter the Reason for Deleting the Explanation (required) and click Save.
    3. Click OK to confirm deletion.
  9. To undo recent changes to an explanation:
    1. Click the Undo icon next to the explanation.
    2. Click OK to confirm.