NMLS Q2 Activity Report Shows 106,881 Unique Individual LO's

The Nationwide Mortgage Licensing System and Registryrn(NMLS) has released information on licensed entities as of the first quarter ofrn2011(March 31) and a limited update on licensees at the end of the secondrnquarter (June 30.)  The NationwidernMortgage Licensing System (NMLS) is the legal system of record for licensing inrnall participating states, the District of Columbia and U.S. Territories.  This appears to be the first set of quarterlyrnreports issued by the system which is in its fourth year of operation.</p

At the end of the first quarter there were 14,980 companiesrnlicensed by the system holding 28,415 licenses and 15,957 licensed branchesrnwith 24,021 branches.  A total of 182,880rnlicenses were held by 100,008 individuals or mortgage loan officers (MLOs).  By the end of the second quarter thesernnumbers had all increased with 16,153 companies holding 30,945 licenses, 17,387rnbranches holding 267,211 licenses, and 106,881 individuals with 201,469rnlicenses.  Multiple licenses are heldrnwhere states require separate licenses for DBAs or for different authoritiesrnsuch as lender and broker.</p

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The most prevalent business activities reported (Q1) by licensees were first mortgage (89 percent) and second mortgage (74 percent) loan brokeringrnfollowed by home equity loans (47 percent), VA loans (35 percent) and FHA loanrncorrespondent (30 percent although the figures do not reflect recent FHArnchanges in this category).  Significantrnnumbers of licensees reported they were engaged in reverse mortgage loans (23rnpercent) first mortgage lending (22 percent) and non-mortgage relatedrnbusinesses (22 percent.)</p

Very few mortgage companies or individual loan originatorsrnoperate across state lines.  12,503 ofrnthe companies or 83 percent are licensed in only one jurisdiction and 79,751 asrnare 80 percent of individuals.  Tenrnthousand individuals and 1,160 companies hold licenses in two jurisdictions andrna smattering are licensed in multiple states but only 175 companies and 850rnindividuals can be considered to have nationwide businesses by holding licensesrnin more than 20 jurisdictions.</p<table border="1" cellpadding="4" cellspacing="0"<tbody<tr

Description</td

Companies</td

% in NMLS</td</tr<tr

First mortgage loan brokering</td

13,298</td

89%</td</tr<tr

Second mortgage loan brokering</td

11,065</td

74%</td</tr<tr

First mortgage lending</td

3,308</td

22%</td</tr<tr

Second mortgage lending</td

2,466</td

16%</td</tr<tr

First mortgage servicing</td

1,322</td

9%</td</tr<tr

Second mortgage servicing</td

1,068</td

7%</td</tr<tr

Home equity loans, including lines of credit</td

7,038</td

47%</td</tr<tr

Federal Housing Administration (FHA) – Loan Correspondent</td

4,473</td

30%</td</tr<tr

Federal Housing Administration (FHA) – Direct Endorsement mortgagee</td

1,376</td

9%</td</tr<tr

Ginnie Mae approved Issuer/Servicer</td

340</td

2%</td</tr<tr

Fannie Mae approved Seller/Servicer</td

1,076</td

7%</td</tr<tr

Freddie Mac approved Seller/Servicer</td

940</td

6%</td</tr<tr

Loans guaranteed by the Veterans Administration (VA)</td

5,292</td

35%</td</tr<tr

Reverse mortgage loans</td

3,515</td

23%</td</tr<tr

High cost home loans (refer to state definitions)</td

1,173</td

8%</td</tr<tr

Other mortgage products and settlement services</td

1,105</td

7%</td</tr<tr

Credit Insurance</td

208</td

1%</td</tr<tr

Other mortgage-related business</td

598</td

4%</td</tr<tr

Engaged in non-mortgage-related business</td

3,269</td

22%</td</tr</tbody</table

 
The vast majority of mortgage companies are single officernoperations and most are one-person shops. rnEight-seven percent of mortgage companies report only one location andrnonly 59 have 50 or more branches.  Thernaverage number of branches per company is 1.06. rnA total of 8,802 companies report none or one licensed loan originatorrn(there may be a company license but no originators required to have anrnindividual license.).  Eighty-threernpercent of companies have 1 to 5 originators with an average of 5.4 MLOs perrncompany.</p

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The majority of mortgage companies (62 percent) arerncorporations following by limited liability corporations (19 percent) and solernproprietors (16 percent).</p

During the first quarter of 2011 1,767 companies, 3,026rnbranches, and 22,341′ individuals applied for new licenses and 2,936 companies,rn3,557 branches, and 28,507 individuals were rnapproved.  Licenses were denied torn21 companies, 14 branches, and 270 individuals. rnAt the end of the quarter applications were pending for 5,280 companies,rn3,896 branches, and 36,569 MLOs.  A totalrnof 60 licenses were revoked, almost all in California and Georgia.</p

During the second quarter new applications were received</bfrom 1,626 companies; 4,129 branches, and 16,673 MLOs and approved for 2,373;rn3,103; and 20,062 respectively.  A totalrnof 416 individual applications were denied along with 2 for companies and 4 forrnbranches.  The backlog of pendingrnapplications dropped to 3,818 companies, 3,587 branches, and 27,609rnindividuals.  Overall, 47 licenses werernrevoked by various jurisdictions during the second quarter.</p

See the full report here.

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