Institutions and their mortgage loan originators (MLOs) that are Federally Registered are required to renew their registrations using the Nationwide Mortgage Licensing System and Registry (NMLS) each year. The 2012 renewal period began on November 1, 2011 and will end on December 31, 2011. Any MLO that was placed into active status with the NMLS prior to July 1, 2011 must be renewed for 2012. Any MLO placed into active status on or after July 1, 2011 will not be required to have their registration renewed until next year when the renewal process begins for 2013. Institutions, on the other hand, must renew their registration for 2012 regardless of when the institution became active in 2011.
The NMLS website contains instructions and resources to assist institution NMLS administrators in complying with the renewal process. A valuable resource is the Federal Registry Renewal and Reactivation Handbook which contains all of the information that an institution’s NMLS administrator needs to know to go through the renewal process. It can be accessed through the NMLS website at http://mortgage.nationwidelicensingsystem.org/fedreg/Pages/FedRegRenewal.aspx. In addition, the NMLS also offers Annual Renewal Workshops and a renewal section in their FAQ as well as other information that will assist with the renewal process.
Prior to beginning the renewal process, the institution’s NMLS administrator should verify the accuracy of the institution’s information and make any necessary amendments to the information according to the amendment instructions. MLOs should be requested to also review their information to insure that it is up to date prior to beginning the renewal process and to make any necessary amendments to their information.
Institutions are required to renew their registration for 2012 by attesting to the accuracy of the information and submitting payment ($100 processing fee) for the institution’s renewal. Renewal of the institution by the administrator must be performed prior to renewing MLOs. Once the institution is renewed for 2012, the administrator will select those MLOs that are eligible for renewal.
The administrator will attest to the renewal for each MLO and submit payment (processing fee) for the renewal. It should be noted that the processing fee for MLO renewals for 2012 has been waived and will not be required. The renewal process can be performed by using a batch process or manual process. Once renewals have been submitted to the NMLS by the institution, MLOs will receive an e-mail from the NMLS to attest to their information. After the MLO completes his/her attestation, the process is complete and the MLO is renewed for the coming year.
The whole renewal process seems easy enough; however, as with all new processes, the first time is always the hardest. Therefore, make sure that the process is started early enough to allow all MLOs to be renewed by December 31, 2011 so that they can continue to perform their functions as MLOs beginning January 1, 2012.
Author: Lorraine A. Williams, CRCM, CRP, CAMS serves as Director, Research and Development for ICS Risk Advisors.
