The National Mortgage Licensing System
(NMLS) is upgrading its reporting system with a number of enhancements, many of
which seem aimed at keeping employers informed of their mortgage loan officers'
(MLOs) activities. NMLS Release 2012.4 is scheduled for October
22 and includes several dozen changes to individual report items.
One area where changes have been made is
Credit Report Enhancements. The system
will include two new summary flags to indicate a Presence in the OFAC (Office
of Foreign Assets Control Database) and charge-offs within the last 84
months. A new delta change indicator
will automatically compare any new summary flags to those included in the last
New items will also be created to alert
regulators of delta changes in the summary flags and credit score. Regulators will be alerted and can review changes
to a flag that has been degraded or improved, where the count of flags has
increased by one or more, or a credit score has been degraded.
A second area is Disciplinary Actions. Updates are being made to require federally
registered MLOs to provide disciplinary action information related to any "yes"
responses to disclosure questions.
State regulatory actions will trigger
notifications to the respondent and the relevant company. This will include updates to existing notifications,
notifications when an individual has been added as a respondent to an action or
an action has been modified or removed.
The existing notification sent to
institutions when a mortgage loan originator they employ submits a filing with
new or updated disclosure explanations will be updated to reference disciplinary
The changes will also include
enhancements to renewal information. The
individual renewal workflow was retooled to make the process more intuitive to
individuals as well as allow the individual to authorize a criminal background
check (CBC) and a credit report in conjunction with renewal. The "do not renew" workflow was also updated
to allow users to mark a license as "Do Not Renew" when they have not satisfied
the education requirement."
A new Renewal Approved notification has
been created for Federal MLOs and for Federal Institutions.