CONFERENCE OF STATE BANK SUPERVISORS

CONFERENCE OF STATE BANK SUPERVISORS (CSBS), ON BEHALF OF STATE REGULATORS, OWNS AND OPERATES NMLS, AN ONLINE LICENSING, REGISTRATION, AND SUPERVISORY PLATFORM THAT BRINGS REGULATORY EFFICIENCY AND ACCOUNTABILITY TO THE MORTGAGE INDUSTRY AND OTHER NONBANK FINANCIAL SERVICES PROVIDERS.NMLS OPERATIONS BEGAN JAN. 2, 2008. CONGRESS RECOGNIZED THE VALUE OF THE NEW SYSTEM AND THAT JULY CODIFIED NMLS IN THE SECURE AND FAIR ENFORCEMENT FOR MORTGAGE LICENSING ACT OF 2008. KNOWN AS THE "SAFE ACT," THE LAW WAS ENACTED TO ENHANCE CONSUMER PROTECTION AND REDUCE FRAUD THROUGH REQUIRED MINIMUM STANDARDS FOR THE LICENSING AND REGISTRATION OF STATE-LICENSED MORTGAGE LOAN ORIGINATORS (MLOS). THE LAW ALSO CALLS ON STATES TO IMPLEMENT AND ENFORCE THESE STANDARDS, REQUIRING MLOS TO MEET PRE-LICENSURE AND ANNUAL CONTINUING EDUCATION REQUIREMENTS.STATE-LICENSED FINANCIAL SERVICES COMPANIES AND MLOS MUST MAINTAIN AN ACTIVE LICENSE THROUGH NMLS, WHILE FEDERALLY REGULATED DEPOSITORY INSTITUTIONS (E.G., BANKS AND CREDIT UNIONS) AND THE MLOS THEY EMPLOY MUST MAINTAIN AN ACTIVE REGISTRATION. CONGRESS MANDATES THAT STATE LICENSEES AND FEDERAL REGISTRANTS MUST RENEW THEIR MORTGAGE STATE LICENSE AND FEDERAL REGISTRATION, RESPECTIVELY, ON AN ANNUAL BASIS.IN 2024, MORE THAN 550,000 INDIVIDUALS WERE LICENSED OR REGISTERED THROUGH NMLS, MORE THAN 34,000 COMPANIES HELD A STATE LICENSE, AND ANOTHER 8,000 COMPANIES HELD A FEDERAL REGISTRATION. WHILE ALL REGISTRATIONS ARE FROM THE MORTGAGE INDUSTRY, THE LICENSES ARE HELD BY FIRMS ENGAGED IN ANY OF THE 70-PLUS NONBANK FINANCIAL ACTIVITIES FOR WHICH STATES REQUIRE LICENSING, INCLUDING MORTGAGE, MORTGAGE SERVICING, MONEY SERVICES BUSINESSES, CONSUMER FINANCE AND DEBT COLLECTION. RECOGNIZING TECHNOLOGICAL ADVANCES OVER THE PAST 16 YEARS, CSBS HAS TAKEN STEPS TO UPDATE THE NMLS PLATFORM. THIS YEAR, WE UPGRADED THE LOGIN PROCESS, ALLOWING USERS TO RECOVER THEIR PASSWORD WITHOUT CONTACTING THE CALL CENTER AND TO CONSOLIDATE MULTIPLE NMLS ACCOUNTS USING ONLY ONE LOGIN.

THE GOVERNMENT RELATIONS FUNCTION OF CONFERENCE OF STATE BANK SUPERVISORS IS THE RESPONSIBILITY OF THE POLICY AND SUPERVISION DIVISION. THE DIVISION COVERS LEGISLATIVE ISSUES AND ADVOCACY, REGULATORY POLICY, BANK SUPERVISION PRACTICES AND COORDINATION, NONBANK SUPERVISION, AND CONSUMER PROTECTION. THE WORK OF THE DIVISION FOCUSES ON THE DIVERSITY OF THE BANKING INDUSTRY, TAILORING REGULATION, AND SERVING AS STATE REGULATORS' LIAISON WITH FEDERAL FINANCIAL REGULATORS. STAFF ALSO ENGAGE IN EFFORTS TO ENHANCE THE EFFECTIVENESS OF STATE SUPERVISION OF BANKS AND NONBANK ENTITIES, INCLUDING FINANCIAL TECHNOLOGY, OR FINTECH, COMPANIES. WE DEDICATE CONSIDERABLE TIME AND RESOURCES TO ASSISTING THE STATES IN THE COORDINATION OF MULTI-STATE SUPERVISION OF THE NONBANK MORTGAGE INDUSTRY. COLLECTIVELY, OUR GOAL IS TO ENSURE THE STATE FINANCIAL REGULATORY SYSTEM IS STRONGLY REPRESENTED IN THE FORMATION OF FEDERAL PUBLIC POLICY. WE MEET THIS GOAL BY MAINTAINING REGULAR CONTACT WITH STATE SUPERVISORS TO BE AWARE OF CURRENT ISSUES AND COORDINATE BEST PRACTICES FOR THE BENEFIT OF THE SYSTEM.