Disciplinary Action Functionality Added to NMLS Registry

The functionality of the federal registration component of the Nationwide Mortgage Licensing System and Registry (NMLS) was updated on Oct. 22, 2012, to accommodate the collection of information about certain disciplinary, enforcement, and other actions against a mortgage loan originator (MLO). Such information must be provided by each MLO or on behalf of the MLO by the covered financial institution that employs the MLO pursuant to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act or the Act) and implementing Regulation G.

Under the previous functionality of the NMLS, MLOs only disclose whether they have been subject to a disciplinary or enforcement action. The new functionality now requires MLOs to provide certain additional information regarding the disclosed action(s). Furthermore, state regulators are now able to link state regulator actions to an MLO’s federal registration.

Going forward, MLOs that have been subject to disciplinary action or enforcement will need to provide details on:

  • The type of action that was taken (e.g. criminal conviction, civil judgment, cease and desist from a regulator, etc.);
  • The name of the authority that took the action;
  • The date the action was taken; and
  • Documentation of the action.

If the MLO had previously disclosed a “yes” to disciplinary or enforcement action, the MLO is responsible for updating his or her profile with that additional information. The deadline for submitting the newly required information is the renewal date for the MLO.

Credit unions and other MLOs are required to ensure that their mortgage loan originators are properly registered and prohibit any employees who are not registered from performing any residential mortgage loan origination duties.


Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance News, NCUA.