By the end of 2014, the Nationwide Mortgage Licensing System and Registry (“NMLS”) will become the predominant state licensing system for money services businesses (“MSBs”). NMLS is a secure, web-based system created by state regulators to provide efficiencies in the processing of state licenses and to improve supervision of state regulated industries. Through NMLS, companies maintain a single record which they use to apply for, maintain, renew, and surrender license authorities in one or more states.
According to Tim Doyle, Senior Vice President of the Conference of State Bank Supervisors (“CSBS”) and State Regulatory Registry LLC, “at this point, we expect 11 more state agencies to transition MSB licenses onto NMLS sometime in 2014. This would add to the current 20 state agencies that use NMLS and would bring the total to 31 state agencies.”
Currently, there are 219 separate companies that have either applied for or transitioned 2,089 MSB licenses (1,200 have been submitted licenses and are awaiting regulatory approval and 889 have been approved.) Here is the distribution of money transmitter licenses vis-à-vis the number of companies currently in NMLS.
In addition to creating and maintaining a base record on NMLS, there is also functionality for the submit- ting of financial statements; reporting agents and authorized delegates; and uploading surety bonds, organization- al and management charts, formation and registration documents, business plans, and other documents. State agencies are discussing the possibility of allowing licensees to upload other uniform periodic reports. An expand- ed uploading feature would help avoid the time and cost of mailing documents during both the licensing and annual renewal processes.
To stay ahead of the curve, licensees and companies that support the MSB and mortgage industries, State and Federal regulators, and other NMLS users will be meeting in the sixth NMLS Annual Conference on February 18-21, 2014 in Miami, Florida.
The conference is designed for both new and experienced users of NMLS and attended by state and federal regulators and licensees and registrants of all types. The Conference provides an invaluable exchange of information among NMLS users on system and regulatory compliance issues that impact their organizations.
Chartwell Compliance is participating in a session on Licensing on NMLS: A Focus on MSBs, with Derek Schultz, SRR (moderator); Pamela Fitzgerald, Examiner, Kentucky Department of Financial In- stitutions; Whitney Kiehl, Senior Analyst, Global Compliance, Western Union Financial Services, Inc.; and Trish Lagodzinski, Chartwell Compliance. Since NMLS is quickly becoming the predominate licensing system for MSBs, regulators and licensees will share their experiences with the system, tips for making it work, and what they would like to see from NMLS in the future.
More information about NMLS is available on the Nationwide Mortgage Licensing System and Registry or by contacting the NMLS Call Center at the toll-free number 855- NMLS-123 or 855-665-7123.
Chartwell Compliance offers professional services to assist with every aspect of licensing compliance, including the requirements of the NMLS program. Our professional staff is available to assist you with state license applications, both paper-based and on
Trish Lagodzinski has more than 19 years of experience in government contracting, project management and support. Read Full Bio. For more information, please contact Trish Lagodzinski. Additional Sources: Conference of State Bank Supervisors (“CSBS”) and State Regulatory Registry LLC.