NMLS Revises Reporting System; Conveys more Disciplinary, Credit Info

The National Mortgage Licensing Systemrn(NMLS) is upgrading its reporting system with a number of enhancements, many ofrnwhich seem aimed at keeping employers informed of their mortgage loan officers’rn(MLOs)  activities.  NMLS Release 2012.4 is scheduled for Octoberrn22 and includes several dozen changes to individual report items.</p

One area where changes have been made isrnCredit Report Enhancements.  The systemrnwill include two new summary flags to indicate a Presence in the OFAC (Officernof Foreign Assets Control Database) and charge-offs within the last 84rnmonths.   A new delta change indicatorrnwill automatically compare any new summary flags to those included in the lastrnrequested report.  </p

New items will also be created to alertrnregulators of delta changes in the summary flags and credit score.  Regulators will be alerted and can review changesrnto a flag that has been degraded or improved, where the count of flags hasrnincreased by one or more, or a credit score has been degraded.   </p

A second area is Disciplinary Actions.  Updates are being made to require federallyrnregistered MLOs to provide disciplinary action information related to any “yes”rnresponses to disclosure questions.  </p

State regulatory actions will triggerrnnotifications to the respondent and the relevant company.  This will include updates to existing notifications,rnnotifications when an individual has been added as a respondent to an action orrnan action has been modified or removed.</p

The existing notification sent torninstitutions when a mortgage loan originator they employ submits a filing withrnnew or updated disclosure explanations will be updated to reference disciplinaryrnactions.</p

The changes will also includernenhancements to renewal information.  Thernindividual renewal workflow was retooled to make the process more intuitive tornindividuals as well as allow the individual to authorize a criminal backgroundrncheck (CBC) and a credit report in conjunction with renewal.  The “do not renew” workflow was also updatedrnto allow users to mark a license as “Do Not Renew” when they have not satisfiedrnthe education requirement.”</p

A new Renewal Approved notification hasrnbeen created for Federal MLOs and for Federal Institutions.

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