Mortgage Professionals: Don’t let the NMLS Tarnish our Industry.
Recently, the NMLS has embarked on expanding the use of
their registry to include non-mortgage industries such as Pawn Brokers, Debt
Collectors, Pay-Day Lenders and even used car financing companies. Currently 12 states have signed up to require
these businesses to register with the NMLS.
Many cash-strapped states will most likely see this is a good way to
provide oversight without the expense.
These non–mortgage businesses will share the same NMLS
identifier adjacent to their registration number as mortgage lenders and
MLO’s. The NMLS identifier must be on
all mortgage marketing materials including business cards and is unique to the
mortgage industry. I cannot think of anything
more damaging to my profession and confusing to the public. All mortgage lenders and originators should
voice their objection. This is an issue
that transcends the registered / licensed mortgage industry divide.
We licensed and registered mortgage loan originators have
paid dearly for the sins of those who are no longer in the mortgage
business. The Conference of State Bank
Supervisors, (CSBC), which oversees the NMLS, needs to correct this immediately
and give these non-mortgage entities a separate identifier. The residential lending community and the
public deserve better.
What Can You Do?
Attend the NMLS Ombudsman Conference, February 26- March 1st. This is the annual gathering of CSBS leadership
and state regulators. You should also write
the CSBS and your state licensing officials.
We must voice our opposition, it is time to stand up and be heard.
Richard Booth, is a Certified Mortgage Banker and
mortgage industry consultant located in Neptune, New Jersey. He can be reached at email@example.com