NMLS Report Paints Picture of Industry Consolidation

Thernnumber of companies holding licenses to lend, originate, or servicernmortgage loans declined slightly in the first quarter of 2013 fromrnone year earlier but the numbers of licenses held by those companiesrnincreased. The National Mortgage Licensing System issued its FirstrnQuarter 2013 report this week showing an 0.2 percent decline torn15,842 unique companies holding NMLS licenses compared to a yearrnearlier but the number of licenses held by those companies was up 7rnpercent to 32,797.</p

Thernnumber of individuals holding licenses as Mortgage Loan Originatorsrn(MLOs) increased by 3.5 percent to 112,970 and the number of licensesrnheld by those individuals jumped 22 percent to 252,555. MLOs whornrenewed expired licenses were counted as “new” licensees inrnthe NMLS data.</p

Therernare 19,046 companies licensed to operate branches and a total ofrn34,295 branches authorized.</p

Numbersrnof companies and individuals licensed by NMLS do not necessarilyrninclude those doing business under federal registration by suchrnagencies as the Office of Comptroller of the Currency. Dualrnlicensure/registration is held by 101 companies and 2,973rnindividuals. </p<pApplications for newrncompany licenses have held steady over the last six quarters,rnaveraging 1,400 per quarter. There were 1,494 applications in thernfirst quarter of 2013, an increase of 54 applications from the firstrnquarter of 2012. Applications for MLO licenses have increasedrnsteadily over the last year. There were a total of 83,362rnapplications submitted in 2012 and 27,059 applications in the firstrnquarter of 2013, the highest number in NMLS's brief history.</p

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Companiesrnlicensed by NMLS are involved in a number of businesses, the largestrnof which is mortgage brokering.</p

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Eighty-onernpercentrnofrncompaniesrnholdrna licenserninrnjustrnonernstate.rn While thernnumberrnofrncompaniesrnwithrnjustrnonernlicenserndeclinedrn(torn12,838rninrn2013rnfromrn13,232rninrn2012,rnorrnthreernpercent),rnthernnumberrnofrncompaniesrnwhornholdrnmorernthanrn10rnstaternlicensesrnis onrnthernrise.</p

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Seventy-fivernpercent of MLOs are licensed in only one state however over the pastrnyear while the number of MLOs holding only one license has increasedrnthree percent, the numbers holding multiple licenses increased atrnhigher rates with those holding more than 10 licenses jumping by 53rnpercent. The average number of state licenses per MLO is now 2.26rncompared to 2.0 one year ago.</p

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Thernaverage licensed company employes 6.5 MLOs, up from 5.8 a yearrnearlier. There are an average of 14.5 licenses for MLOs in eachrncompany compared to 11.4 in the first quarter of 2012.  MortgagernCall ReportrnDatarnsubmittedrninrnNMLS shows there were a total of 3,282,904rnloansrnworthrn$764rnbillionrnoriginated in 2012.</p

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