TopMortgage Compliance Update (1)

March 12, 2012


NMLS: 2011 Licensing Report

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On March 5, 2012, the Conference of State Bank Supervisors (CSBS) released its fourth quarter data for state-licensed mortgage companies, branches, and individuals in the Nationwide Mortgage Licensing System & Registry (NMLS).

Some highlights:
  • 17,121 state-licensed mortgage companies with 33,124 licenses in NMLS at the end of Q4, up from 16,776 state-licensed mortgage companies with 32,473 licenses in Q3.
  • 116,991 state-licensed mortgage loan originators with 226,010 licenses in NMLS at the end of Q4, up from 113,352 state-licensed mortgage loan originators with 216,531 licenses in Q4.
The report counts the number of companies, branches, and mortgage loan originators in each state, regardless of the number of licenses these entities may hold in each state.

Thus, if a company holds two licenses within a state (i.e., broker and lender), the company is only counted once. The same is true for the Average Mortgage Loan Originators (MLOs) per company and average branches per company.
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As stated above, the report counts the number of companies, branches, and mortgage loan originators in each state, regardless of the number of licenses these entities may hold in each state.

The report also provides data on the number of license applications, application approvals, application denials, application withdrawals, license revocations, license suspensions, and license surrenders that took place between January 1, 2011 and March 31, 2011, the first quarter 2011.

Included as well is the number of licenses that were in a pending status on March 31, 2011. "License" also means state registrations. "Application Denied" typically indicates a final denial after appeals have been exhausted, though state process and definitions may vary concerning this point.
License Status DefinitionsDefinitions

Status assigned when regulator has reviewed the license or registration application and decided to issue a license to the applicant through NMLS.

Status assigned when a regulator has reviewed the license or registration application and determined that sufficient grounds exist to deny the request. This status may also be used by regulators who deny a renewal request for license.

Application Withdrawn
Status assigned when an applicant has been approved to voluntarily withdraw their application or has not responded to regulator requests for additional information within a timely manner.

Pending Applications
Status assigned when an application has been submitted to the regulator and the regulators is waiting for additional information from applicant or has received all necessary items and is reviewing the application.

License Revoked
Status assigned when a regulator has taken action to revoke the license or registration. Pursuant to federal SAFE legislation, placement of a MLO license into this status will render the MLO unable to obtain or maintain a license to conduct mortgage business in any jurisdiction.

License Suspended
Status assigned when a regulator has taken action to suspend the license or registration.

License Surrendered or Terminated
Status assigned when a regulator approved a surrender or cancellation request submitted by the licensee or registrant.
An interesting statistic is 83% of companies employ 1-5 mortgage loan originators.

Note that a significant number of companies are reported as having no MLOs. This is due in part to the fact that some companies may hold a state license but have no individuals that must hold a mortgage loan originator license (i.e., servicers). Some states do not require sponsorship of MLOs by the employing mortgage company and therefore NMLS does not provide an average.
NMLS-MLO Chart 2011
The report states that statistical results indicate:
  • An average of 5.5 MLOs per company
  • An average of 9.9 MLO licenses per company
  • An average of 1.8 licenses per MLO
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Nationwide Mortgage Licensing System & Registry

A Nationwide View on State-Licensed Mortgage Entities

2011 Quarters I, II, III & IV
Dated: February 7, 2012
Released: March 5, 201
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