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Mortgage Industry Update

Licensing Updates

Number of licenses:

License Types	Count as of May 2012	Count as of May 2011
Mortgage Broker Main Office	369	415
Mortgage Broker Branch Office	151	190
Consumer Loan Main Office	421	380
Consumer Loan Branch Office	1,193	1,075
MLOs Active & Inactive	7,442	7,150

DFI Ends PDF Licenses for MLOs

DFI plans to stop issuing PDF licenses for MLOs effective mid-June.

The move is an effort to streamline the license or amendment process and end duplicative work for both DFI and stakeholders. Individuals and sponsoring companies can access a MLO’s license and sponsorship status through the individual’s NMLS record. Additionally, MLOs and their sponsoring company already receive real-time NMLS notification for all license, sponsorship and renewal approvals.

Please pass this information to all lenders or any other third parties who rely on the PDF license to verify licensure. After the move, MLOs can prove license status in one of two ways:

1. DFI’s Licensee Database
   • First approvals or renewal approvals usually take 1 business day to display.
2. NMLS Consumer Access
   • To verify MLO license and/or sponsorship status, scroll to “State Licenses/Registrations” and click on “View Details” on the line showing the Washington license.
   • To verify location(s) MLO is authorized to work at, please use DFI’s Licensee Database

All Licensees Must Update NMLS Record

If you haven’t recently logged into your NMLS record, now is the time to do so. As part of the new release in April, NMLS updated the forms to reflect new fields, disclosure questions and uploading functionality. This means all licensees, company, branches and individuals, must log into their NMLS record and submit a new filing as soon as possible.

A requirement was posted May 1 on all Washington licenses which haven’t yet filed on the new form. The requirement will clear after the new form is filed. Use the Status and Deficiencies Quick Guide (pdf) to review any requirements posted to your Washington license. Failure to submit the new form will impact your ability to renew so file the new form now.

As of last week:

• 53% of Consumer Loan Companies filed the new form, 34% of branches
• 34% of Mortgage Broker Companies filed the new form, 6% of branches
• 63% of MLOs filed the new form

Preparing for Renewals

In just about five months, the renewal period for 2013 opens. There are steps you can take now to ensure an on-time and hassle-free renewal:

• Take Your Continuing Education: Washington’s requirement is nine hours, of which one hour must cover Washington law. Almost 10% of current-licensed MLOs are done with this requirement.
• Update NMLS Record: Make a new filing on the new forms now. Licenses will not be renewed until the new form is completed, submitted and reviewed by DFI. Waiting to file the new form until you renew will delay the processing of your renewal request.
• Review Credit Report: Ensure you are familiar with your credit report and that all items are disclosed. A new credit report and criminal background check (CBC) will be required in NMLS for renewal. Do not request a new credit report or CBC on NMLS yet. DFI will provide more details in the coming months..

Tips for Success

Did you know?

• There is no “national” license. NMLS is a database which facilitates the exchange of information between applicants/licensees and regulators. The NMLS Call Center staff assists with system functionality while state regulators enforce their state laws.
• When applying for a new company or branch license, it is the best practice to sponsor the MLO(s) at that location at the same time. DFI staff can then process the location and the MLO(s) together rather than the location first and MLO(s) several days later.
• Have your NMLS number ready when contacting DFI. This applies to company, branches and individuals. Looking things up by NMLS number is more efficient than by name.

Examination Update

Keeping Current on the Mortgage Call Report (MCR)

With the Mortgage Call Report in its second year, the majority of licensees appear to understand the information required and the deadlines for filing. The biggest challenge so far related to the MCR is the Financial Conditions (FC) component. This section collects financial information at the company level and must be filed annually by Standard MCR filers.

To date, almost 100 Mortgage Broker licensees and 42 Consumer Loan licensees are missing Financial Conditions. DFI is actively reaching out to these licensees. More information on Financial Conditions can be found on the NMLS website.

As a reminder, the MCR filing deadlines for 2012 are:

Quarter	Deadline
Q1 (covers Jan-Mar 2012)	May 15, 2012
Q2 (covers Apr-June 2012)	August 14, 2012
Q3 (covers July-Sept 2012)	November 14, 2012
Q4 (covers Oct-Dec 2012)	February 14, 2013