RD191 - Report on the Operations of State Regulatory Registry LLC – June 19, 2018
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 2017 operations of SRR and the Nationwide Mortgage Licensing System and Registry ("NMLS").
SRR is a non-profit subsidiary of the Conference of State Bank Supervisors (“CSBS") that operates the NMLS on behalf of state financial services regulatory agencies and carries out mortgage loan originator testing and education requirements under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (“SAFE Act"). NMLS is the system of record for non-depository financial services licensing or registration, including the licensure of mortgage companies, in participating state agencies, the District of Columbia, and the U.S. territories of Puerto Rico, Virgin Islands, and Guam. As of December 31, 2017, SRR reported audited total assets of $137.7 million and net income of $17.3 million. The certified public accounting firm of Tate & Tryon issued a “Clean" or Unqualified Opinion of SRR, and the financial statements and budgets appear to accurate and reasonable. The Bureau does not take issue with the disclosures therein.
Approximately 53,000 mortgage loan originator ("MLO") test components were administered in 2017. At the end of 2017, NMLS was the system of record for 62 state and territorial agencies, managing a total of 442 different license authorities covering a broad range of non-depository financial services. Virginia had 4,414 individuals apply to be licensed in Virginia after taking and passing the National Test with the Universal State Test (“UST") and 3,645 of those individuals were approved. SRR did not experience any material issues related to NMLS security, privacy, or information breach in 2017. In addition, SRR was not subject to any significant litigation in 2017.