NMLS (Nationwide Mortgage Licensing System) is an Internet-based system modeled on the registry used to regulate securities brokers and dealers. It will provide a basis for coordination among the states for mortgage supervision and consumer protection and will prevent, for example, mortgage originators or brokers with complaints or violations on their records from moving to a different state and starting over.
“This is scheduled for release January 25, 2010. It was mandated under Title V of the Housing and Economic Recovery Act of 2008. This law gives the consumer access at no charge to data regarding the employment record of and publicly adjudicated discipline actions against State- licensed and federally regulated loan originators. Criminal back ground checks will be run through the FBI, felons will be barred for 7 years and those who commit financial crimes will be barred for life.”
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