RD175 - Report on the Operations of the State Regulatory Registry LLC – June 30, 2017
This Report was prepared pursuant to Title 6.2, Chapter 17, § 6.2-1720 D of the Code of Virginia, which directs the State Corporation Commission ("Commission") to:
• annually review the proposed budget, fees, and audited financial statements of the State Regulatory Registry LLC ("SRR");
• annually, to the extent practicable, report to the House and Senate Committees on Commerce and Labor on the operations of SRR, including compliance with its established protocols for securing and safeguarding personal information in SRR;
• to the extent practicable, prepare, publicly announce and publish a report by no later than July 1 of each year that summarizes statistical test results and demographic information to be prepared by SRR or its test administrator; and
• report violations of this chapter, any enforcement actions thereunder, and other relevant information to the SRR on a regular basis.
On behalf of the Commission, its Bureau of Financial Institutions ("Bureau") is pleased to submit this report on the 2016 operations of SRR and the Nationwide Mortgage Licensing System and Registry ("NMLS").
As of December 31, 2016, SRR reported audited total assets of $119 million and net income of $18.4 million. The CPA firm of Tate & Tryon issued a “Clean” or Unqualified Opinion of SRR, and the Bureau does not take issue with the disclosures therein. The financial statements and budgets appear to be accurate and reasonable.
Approximately 61,000 mortgage loan originators ("MLO") test components were administered in 2016. At the end of 2016, NMLS was the system of record for 62 state agencies, managing a total of 601 different license authorities covering a broad range of non-depository financial services. This is up from 585 at the end of 2015.
SRR did not experience any material issues related to NMLS security, privacy, or information breach in 2016. In addition, SRR was not subject to any significant litigation in 2016.