NMLS ID stands for Nationwide Mortgage Licensing System and Registry ID. It’s the number permanently assigned for every individual, company, and branch that keeps a single NMLS account. For you to be offered a loan by a mortgage officer, he will need your NMLS number. This number will then follow you all through your career.
NMLS started in 2008 upon passing the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act. Now, the same act requires mortgage and loan officers to be licensed pursuant to the national standards. But, on the other hand, consumers can now compare credentials, background, and other essential data of the official place of business of their mortgage officer.
IS THIS IMPORTANT TO CONSUMERS?
The ratio behind this requirement is to stop dishonest lenders from taking advantage of the consumers and their needs. Through the NMLS system, information on the prospective lenders that fit your needs will be easily accessible. For example, you’re planning to contract a loan with a particular lender. You can use their NMLS ID to see if they have past legal issues or unethical practices. All you have to do is open the NMLS website and input their NMLS ID. The information you see will help you decide whether or not to proceed with the loan contract.
HOW CAN A LENDER GET AN NMLS NUMBER?
According to experts and the Loan Officer License Information, here are a few steps that need to be followed to get an NMLS number and a license.
* Ensure that your existing license is possessed and used accordingly to remain a license possessor in good standing.
* Ensure that you have not been convicted of any felony within the last seven years.
* Make sure that you have not been convicted of any kind of financial crime in the past.
* Show a credit report reflecting your financial responsibility.
* Attend yearly mandatory continuing education classes.
WHY ARE THESE REQUIREMENTS NECESSARY?
All these standards and requirements set for the licensing and issuance of an NMLS number to a loan officer will ensure that they will be skilled and ethical enough to deal with their clients. It’s for the protection of the consumers and regulation of the lending industry. If you’re a house buyer, the least you want to happen is to conduct business with a sketchy loan officer. If the prospective loan officer has an NMLS number, you can rest easy and think that you’re in good and able hands.
The next time you apply for a loan, check the credentials of your lender. In as much as you want to hasten your loan application process, you also need to check and verify if you’re dealing with someone legit in the business.
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