This Report was prepared pursuant to Title 6.2, Chapter 17, § 6.2-1720 D of the Code of Virginia ("Code"), which directs the State Corporation Commission ("Commission") to:

1. Annually review the proposed budget, fees, and audited financial statements of the Registry;(*1)

2. Annually, to the extent practicable, report to the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor on the operations of the Registry, including compliance with its established protocols for securing and safeguarding personal information in the Registry;

3. 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 the Registry or its test administrator; and

4. Report violations of this chapter, any enforcement actions thereunder, and other relevant information to the Registry on a regular basis.

On behalf of the Commission, its Bureau of Financial Institutions ("Bureau") is pleased to submit this report on the 2021 operations of the State Regulatory Registry LLC ("SRR") and the Nationwide Multistate Licensing System and Registry ("NMLS") (the "Registry"). SRR was formed in 2006 and is a non-profit corporation based in Washington, D.C. SRR is a subsidiary of the Conference of State Bank Supervisors ("CSBS"), a national organization which advances the quality and effectiveness of regulation and supervision of state banking and financial services. SRR is directed by a board of managers consisting of state regulators. SRR owns and operates NMLS on behalf of state financial services regulatory agencies and carries out mortgage loan originator ("MLO") testing and education requirements under Title V of the Housing and Economic Recovery Act of 2008 – specifically, the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ("SAFE Act").

NMLS was initiated by state mortgage regulators in 2008 in response to the increased volume and variety of residential MLOs. 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. Through NMLS, SRR supports the strategic goals of the CSBS members, assisting state agencies in consumer protections and supervision of non-depository financial service industries by providing technological resources and information on a nationwide basis.

State regulators are the primary licensing authority for nonbank financial services companies. Nonbank financial services companies include, but are not limited to, mortgage providers, money services businesses and consumer finance companies. There are over 579,000 MLOs in the United States – all are licensed or registered in NMLS. In 2021:

• state-licensed mortgage companies originated $2.6 trillion in loans, accounting for 63% of mortgage originations in the United States;

• over 93,000 MLO National Multistate Licensing System Loan Officer exams ("National Tests") were administered by SRR;

• 11,584 individuals applied to become licensed as MLOs in the Commonwealth after taking and passing the test; and

• the Bureau's Commissioner of Financial Institutions approved 10,610 licenses.

SRR did not experience any material issues related to NMLS security, privacy, or information breach in 2021, nor was it subject to any significant litigation in 2021.
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(*1) Code § 6.2-1700 defines "Nationwide Multistate Licensing System and Registry" or "Registry" as "a mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of mortgage loan originators."