FINAL NOTICE
TRANSITION LETTER TO LICENSED LENDERS AND BROKERS
| TO: | All Licensed Mortgage Lenders, Correspondent Mortgage Lenders and Mortgage Brokers |
| FROM: | Howard F. Pitkin, Banking Commissioner |
| RE: | Nationwide Mortgage Licensing System |
| DATE: | October 2008 |
The Connecticut Department of Banking is pleased to announce that we will begin using the CSBS/AARMR Nationwide Mortgage Licensing System (NMLS) starting on July 1, 2008. NMLS, developed through the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR), will allow your company to conveniently manage its mortgage license(s) in an electronic format through a secure website. We will be joining seven other states already using NMLS and eight other states joining the system with us on July 1st.
The Nationwide Mortgage Licensing System is online at: www.stateregulatoryregistry.org/NMLS
Connecticut’s Transition Plan
As a part of the implementation of NMLS, each company holding a Connecticut Lender, Correspondent Lender or Broker license must create a company record (Form MU1) and a record for each branch (Form MU3) in NMLS and electronically submit it to Connecticut between July 1, 2008 and November 30, 2008.
As a part of the implementation of NMLS, each company holding a Connecticut Lender, Correspondent Lender or Broker license must create a company record (Form MU1) and a record for each branch (Form MU3) in NMLS and electronically submit it to Connecticut between July 1, 2008 and November 30, 2008.
Please be advised that a number of changes were made to our licensing laws. Some of these changes, which are effective July 1, 2008, are listed below:
- The expiration date of all licenses that expire on September 30, 2008 has been extended to December 31, 2008.
- Renewal notification will be sent only to licensees that transition onto NMLS by November 30, 2008.
- The first and secondary mortgage license types have been consolidated into one license. As a result, only one license will be required to engage in both first and secondary mortgage activity. Licensees who hold both a first and secondary mortgage license at one location must use the first mortgage license number when asked to provide a license number by the NMLS.
- Licensees will be required to submit information regarding their Main Office on NMLS Form MU1. Information regarding all other locations must be submitted on the Branch Application NMLS Form MU3.
- Licensees must renew their licenses through NMLS, on or before December 31, 2008, and annually thereafter on or before December 31. A copy of Connecticut’s transition plan can be found on the NMLS website.
How to Access NMLS
In order to gain access to NMLS for the first time you must complete a Company Account Request Form and identify a Primary Account Administrator and a Secondary Account Administrator. This form can be submitted electronically through the NMLS website in the “Getting Started” section. This form needs only to be submitted once per company, regardless of the number of NMLS participating states in which you are licensed. IF YOUR COMPANY ALREADY HAS ACCESS TO NMLS, THEN YOU DO NOT NEED TO DO THIS STEP.
In order to gain access to NMLS for the first time you must complete a Company Account Request Form and identify a Primary Account Administrator and a Secondary Account Administrator. This form can be submitted electronically through the NMLS website in the “Getting Started” section. This form needs only to be submitted once per company, regardless of the number of NMLS participating states in which you are licensed. IF YOUR COMPANY ALREADY HAS ACCESS TO NMLS, THEN YOU DO NOT NEED TO DO THIS STEP.
Once you complete and submit this form, the Primary Account Administrator will receive NMLS login information within 3 business days. The Primary Account Administrator for your company will have full rights to (1) access the System, (2) submit information to this Department and other participating state mortgage regulators, and (3) set-up other company users in the System. Instructions and tutorials on how to access and use the System are also available on the NMLS website.
Forms to Complete and Fees
Once you are able to access NMLS, you will need to submit the following MU Forms through NMLS to Connecticut by November 30, 2008. Instructions and tutorials on how to complete these forms are available online at the NMLS website.
Once you are able to access NMLS, you will need to submit the following MU Forms through NMLS to Connecticut by November 30, 2008. Instructions and tutorials on how to complete these forms are available online at the NMLS website.
- Licensed companies submit a Form MU1.
- Companies submit for each Control Person* (such as an executive officer, qualified individual and branch manager) a Form MU2, as part of their Form MU1 filing.
- Companies submit for each Licensed Branch a Form MU3.
- Companies submit for each licensed Loan Originator* a Form MU4 and sponsor each Loan Originator. While NMLS will accept Form MU4 directly from Loan Originators, using this option will likely result in delays in the approval process.
*Before a Control Person’s Form MU2 and a Loan Originator’s Form MU4 is submitted to Connecticut, the subject individual must first attest to the information contained in the form.
You may begin completing these forms prior to July 1, 2008, but will not be able to submit them to Connecticut until that date. Connecticut will not accept paper forms after June 13, 2008.
If you have submitted these forms in another state, then you do not need to re-enter your company, branch or loan originator records into NMLS. You will only need to identify the appropriate license type in Connecticut and complete a few state specific fields.
Costs
For companies and individuals transitioning an existing license onto NMLS, a system processing fee of $100 per company license, $20 per licensed branch location and $30 per loan originator license will be required to be paid electronically through NMLS upon submission. The NMLS processing charges are applied on a per license per state basis.
For companies and individuals transitioning an existing license onto NMLS, a system processing fee of $100 per company license, $20 per licensed branch location and $30 per loan originator license will be required to be paid electronically through NMLS upon submission. The NMLS processing charges are applied on a per license per state basis.
On an ongoing basis, NMLS will annually charge a processing fee of $100 per company license, $20 per licensed branch location, $30 per loan originator license and $30 each time a loan originator changes employment. There are no other NMLS processing fees. These processing fees pay for NMLS’ operations, including licensee system access 362 days per year, ability to maintain, renew and run reports on your licenses, and call center support.
NMLS Training
Connecticut will be participating in a Training Workshop Audio Program & Webinar conducted by the State Regulatory Registry LLC for our licensees on June 10th. If you are unable to participate on June 10th, the webinar will be repeated on July 10th. This webinar will provide licensees and applicants with tips on using NMLS to transition and manage one or more licenses. The fee for this workshop is $50.
Connecticut will be participating in a Training Workshop Audio Program & Webinar conducted by the State Regulatory Registry LLC for our licensees on June 10th. If you are unable to participate on June 10th, the webinar will be repeated on July 10th. This webinar will provide licensees and applicants with tips on using NMLS to transition and manage one or more licenses. The fee for this workshop is $50.
NMLS Website
The NMLS website provides step-by-step instructions on how to access the system, guides on how to complete the MU Forms, each state’s transition plans and requirements, tutorials, current and future participating states, system alerts, system processing fees and general background information.
The NMLS website provides step-by-step instructions on how to access the system, guides on how to complete the MU Forms, each state’s transition plans and requirements, tutorials, current and future participating states, system alerts, system processing fees and general background information.
If you have any questions feel free to contact Jessica Salvatore at 860-240-8158 or by email at jessica.salvatore@ct.gov.
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