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Question: Will the NMLS be changing?

Answer:

The Conference of State Bank Supervisors (CSBS), which oversees NMLS through the State Regulatory Registry LLC, recently announced a six-year plan to enhance and modernize NMLS in stages. CSBS outlined its agenda for phase 1 and phase 2 occurring over the next two years:

Phase 1 – 2024:

• Eliminate the need to call the NMLS Call Center to reset a password (the NMLS log-in site will soon have a “Password Reset” functionality);
• Establish a single log-in per individual user (multiple accounts by the same individual will be consolidated under one profile with a single log-in);
• Reduce duplication of individual records;
• Introduce survey and system usage tracking; and
• Update NMLS’ design and improve navigation.

Phase 2 – 2025:

• License workflow changes in an effort to make NMLS more intuitive;
• Implement enhanced integration (for example, ensure all license requirements can be found in one location rather than having to review checklists, statutes, etc.);
• Company/Mortgage Loan Originator associations updates:
  • Streamlining processes related to company access, relationships, registered location links, and sponsorships;
  • Incorporating system-driven rules for location and sponsorship requirements, such as auto-sponsorship (provided each state adopts); and
• More robust data validations and accuracy checks when completing the MU-4 form to help prevent incomplete applications.

CSBS launched a new NMLS Modernization site, which provides helpful information about upcoming changes and which will be used to collect industry feedback and provide demonstrations on new and/or proposed NMLS features.