Providing Disclosure Explanations
How to provide disclosure explanations in NMLS.
Users of NMLS must provide Disclosure Explanations for any Disclosure Question with a Yes response, and may provide explanations for No responses. 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.
- Brief Description of Explanation
- A brief statement describing what event the Explanation relates to (e.g. Felony, Cease and Desist Order).
- Disposition
- 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
- 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.
- Applicable Questions
- Select the checkbox next to the disclosure question(s) with Yes responses related to the Explanation you have provided. A single Explanation can be associated to one or more questions and multiple Explanations can be associated to a single question.
- Supporting Document
-
- 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.
A separate Explanation should be provided for each event resulting in a Yes response to a disclosure question. In addition, a single Explanation can be associated to one or more disclosure questions.