RD190 - Report on the Operations of the State Regulatory Registry LLC - July 11, 2014

Executive Summary:

In accordance with the Code of Virginia, the Bureau of Financial Institutions (Bureau) offers the following report of its review of the SRR and the Nationwide Mortgage Licensing System (NMLS). (*1)


NMLS was initiated by state mortgage regulators in 2004 in response to the increased volume and variety of residential mortgage loan originators. SRR was formed in 2006 and is a non-profit corporation based in Washington, D.C. (*2) SRR is a wholly owned subsidiary of the Conference of State Bank Supervisors (CSBS) (*3), and it owns and operates NMLS. SRR is directed by a Board of Managers consisting of eight state regulators.

NMLS is a Web-based application which enables mortgage lenders, mortgage brokers, mortgage loan originators (MLOs), and other various non-depository lenders to apply for, amend, update, and renew state licenses online with participating regulatory agencies using a single set of uniform applications. NMLS also offers consumers an on-line public access/inquiry, which discloses licensing information and regulatory enforcement history.

The most common transactions performed through NMLS are new license applications, amendments, and license renewals. An amendment occurs each time a licensee or registrant’s record is updated, whereas renewals are submitted annually. (*4)

NMLS launched with seven states on January 2, 2008, and this Bureau went live on NMLS on August 3, 2009. Title V of the "Housing and Economic Recovery Act of 2008," entitled “The Secure and Fair Enforcement for Mortgage Licensing Act of 2008” (SAFE Act), mandated that all MLOs be either federally registered or state-licensed through NMLS. (*5) As of June 30, 2014, there were 9,838 MLOs approved and licensed in Virginia through NMLS, as well as 964 mortgage lenders and brokers approved and licensed in Virginia. (*6)
(*1) The 2013 SRR Annual Report was publically released June 16, 2014.
(*2) SRR has been ruled by the Internal Revenue Service to be a single member domestic limited liability company and is therefore disregarded as a separate entity for tax purposes.
(*3) CSBS is the nationwide, non-profit organization for state bank regulators, representing the 50 states, the District of Columbia, and U.S. Territories which supervise state-chartered financial institutions. The majority of state banking departments also oversee mortgage providers and other financial service providers.
(*4) SRR 2013 Annual Report, Page 10.
(*5) Title V of The Housing and Economic Recovery Act of 2008 (H.E.R.A.), “the SAFE Act”, became effective July 30, 2009 and mandated that state-licensed MLOs meet certain minimum requirements for licensure or lose state oversight of MLOs to the federal government.
(*6) This data taken from the NMLS Statistical Report June 30, 2014.