The Conference of State Bank Supervisors (CSBS) has launched a functionality that enables an individual to authorize a credit report through the Nationwide Mortgage Licensing System and Registry (NMLS). Beginning Monday, all licensed residential mortgage loan originators participating in NMLS will be required to complete the credit authorization process, regardless of any prior state requirements.
Providing credit-history processing through NMLS fulfills one of the mandates of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the SAFE Act), which requires individual licensees to provide authorization for NMLS to obtain an independent credit report from a consumer reporting agency.
New license applicants wishing to obtain a mortgage loan originator (MLO) license and transitioning applicants will be required to authorize a credit report and score with the submission of their license application or their transition request.
Those MLOs who have already filed an application through NMLS will need to authorize a credit report and score through NMLS prior to the deadlines imposed by the states in which they are licensed, even if credit information was previously reviewed by a state agency, the CSBS explains.
Once an MLO has authorized the credit report, each state regulator will independently review the credit information of the MLOs licensed in its jurisdiction.