Company license and branch license transition information
Background information
On July 30, 2008, President Bush signed Public Law 110-289--the Housing and
Economic Recovery Act of 2008. Title V of the bill, the Secure and Fair Enforcement for Mortgage
License Act (the SAFE Act) impacts mortgage brokers and loan originators by requiring all loan
originators be licensed using the Nationwide Mortgage Licensing System & Registry (NMLSR).
The Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage
Regulators (AARMR) developed the NMLSR to allow companies to manage their mortgage licenses in
an electronic format through a secure website.
The Division of Finance and Corporate Securities (DFCS) will begin using NMLSR
to license mortgage bankers, mortgage brokers, and mortgage loan originators in 2010. Oregon
intends to use a two-step process for transitioning on to the NMLSR by first requiring companies
to transition their licenses onto the system between January 4, 2010, and March 31, 2010, then
beginning to take mortgage loan originator license applications beginning on April 1, 2010. This
two-step process will ensure that companies are on the system when loan originators begin applying
for their licenses
How this affects you
Companies with an existing Oregon license that expires on or after July 1, 2010,
will be required to transition onto the NMSLR between January 4, 2010, and March 31, 2010.
Transitioning a license into NMSLR is a multi-step process that requires coordination
between the company and its owners, officers, and experienced person. As a result, there are
delays, often of several days, between steps. Please allow yourself plenty of time to complete
the process. We recommend beginning in January 2010 but no later than March 1, 2010, to ensure
sufficient time to complete the process.
On
April 1, 2010, NMLSR will no longer permit a company to request transition for its license. At
this point, you will be required to apply for a new license, pay the regular licensing fee, and
wait for your license to be issued before conducting business. If a mortgage banker or mortgage
broker conducts business during a period in which they are not licensed, they will be subject
to civil penalties.
NMLSR forms
The following forms must be electronically submitted to the NMLSR:
- Licensed companies will submit a Form MU1.
- A Form MU2 will be submitted for each Control Person such as
an executive officer, experienced person, any person directly or indirectly owning 10 percent
or more of the company, and branch manager.
- A Form MU3 will be submitted for each branch location the company
has licensed in Oregon.
Examples of these forms and instructions for completing them may be found at
http://www.stateregulatoryregistry.org/AM/Template.cfm?Section=MU_Forms
NMLSR fees
The system processing fee for a company to transition their license onto NMLSR
is $100 per state. The fee for each licensed branch location is $20. These fees are paid electronically
through NMLSR.
The Division of Finance and Corporate Securities does not charge any fees to
transition a company or branch license.
Accessing NMLSR for the First Time
In order to begin using NMLSR, you must complete a Company Account Request Form
and identify a Primary Account Administrator and a Secondary Account Administrator. You will
submit this form electronically through the NMLSR website in the "Getting Started"
section.
If
your company has already requested and been given an account number because it is participating
in the system to do mortgage lending in another state, you do not have to resubmit these forms.
They are only submitted once for each company, and will cover activities in all states. You will
only have to login to NMSLR to identify that you wish to apply for your Oregon license and complete
a few additional fields.
For companies that are new to the NMSLR, after completing and submitting the
Company Account Request Form, the Primary Account Administrator will receive login information
within three business days. This will give full rights to access NMLSR, submit information to
DFCS and other participating state mortgage regulators, and set-up access for other users within
the company.
Transitioning your license into the NMLSR
When you transition your company, you will use your existing license number. You
can find your company's license number on the license issued by the Division of Finance and Corporate
Securities or by looking up your company on our web site at http://www4.cbs.state.or.us/ex/dfcs/dfcslic/mortgage_lender/search/index.cfm?fuseaction=show_search_page.
The exact format must be the letters "M" and "L" followed
by a hyphen and your company's specific license number and then the branch number as listed on
the license issued for the branch. For instance, Eagle Home Mortgage LLC would transition the
branch on Hunziker by entering ML-1-2.
If you
do not enter your license number or do not enter it correctly, NMSLR will charge you for a new
license rather than permit the transition of an existing license. NMLSR does not refund fees,
so it is important to make sure you enter your information correctly the first time.
The following image is an example of the screen you will use to enter your existing
license number:
Branch license transition information
If you have an existing branch that you wish to transition, you will need to
enter a license number for the branch when you come to the screen that requests it. You can find
the company's license number and the branch number on the branch license issued by the Division.
The proper format for that to enter the letters "M" and "L"
followed by a hyphen, your company's specific number followed by a hyphen, and then the branch
number as listed on the license issued for the branch. For instance, Eagle Home Mortgage LLC
would transition the branch on Hunziker by entering ML-1-2.
If you
do not enter your license number or do not enter it correctly, NMLSR will charge you for a new
branch license rather than permit the transition of an existing branch license. NMLSR does not
refund fees, so it is important to be sure you enter your information correctly the first time.
The following image is an example of the screen you will use to enter your existing
branch license number:
NMLSR Website
Information on NMLSR, including instructions and tutorials on how to access
and use the system, are available on on the NMLSR
resource page.
The site provides step-by-step instructions on how to access the system, guides
on how to complete the application forms, the transition plans for each state, tutorials, current
and future participating states, system alerts, system processing fees and general background
information.
There are also links to NMLSR and Oregon-specific information on the DFCS website
www.cbs.state.or.us/external/dfcs/nmls.html
including a copy of Oregon's transition plan.
We have answers to frequently asked questions on our website at www.oregondfcs.org/mortgage_lending.html.
These will be updated as more information is available. If you have any other questions about
Oregon's transition plan for your company, please ask one of our examiners, who are assigned
to licensees based upon the company name.
