What is Nationwide Mortgage Licensing System (NMLS)?
The NMLS was formed in 2008 following the mortgage meltdown experience starting in 2007 into 2009. Legislation (SAFE Act) was passed by Congress to protect the consumer and ensure lenders were trained and licensed at a Federal and State level to originate mortgages provide sound mortgage loan advice to consumers. The requirements would require every prospective loan originator to take 20 hours of federal coursework and 2 -5 hours of state coursework and then pass a written examination.
The NMLS is the system or database to track all lenders and associated mortgage loan originators to ensure compliance in passing the initial exams along with background and credit checks initially and an annual renewal educational requirement of 8 hours along with an online exam.
Any licenses as a company or individual must be registered and process through the NMLS. Each company and loan originator are issued a unique number. Hall Financial’s NMLS # is 1467435 for example and must appear in any consumer facing advertising.
The NMLS is there to protect consumers from unfair lending and bad lending practices. Complaints can be filed by a consumer and if warranted a license can be suspended or revoked.
Always work with a trusted mortgage company and associated loan originator such as Hall Financial.