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The Importance of the NMLS

Many of you proudly list your designations in your signatures – CPA, CFP, ABR, CRS, GRI, SFR, e-Pro.  You do so because they demonstrate your dedication to your profession and distinction in your field.

You may have noticed my signature has ‘NMLS# 91445’ after my name.   What is ‘NMLS’ anyway?   It is the National Mortgage Licensing System – a Federal database required by the Secure and Fair Enforcement for Mortgage Licensing Act of 2008.   

The SAFE Act’s purpose is to create a uniform standard for mortgage originators.   All mortgage loan originators must register with the NMLS, obtain a unique identifier number, provide personal history/experience and pass a background check.   

Originators who work for a mortgage broker or an independent lender (like Cunningham & Company) must meet additional requirements.  Beyond the requirements listed above, we must do the following to be a licensed mortgage originator:
- Complete or document prior completion of 20 hours of industry education which includes Federal lending laws and ethics
- In NC complete an additional four hours of NC specific education
- Demonstrate financial responsibility via review of our credit report
- Pass a national test (75%+ score)
- Pass a test for each state in which we lend (in my case – NC, SC and VA)
- Complete 8 hours of continuing education annually

Bank loan officers are not mandated to complete any of these additional requirements.

Not sure of your originator’s status?  The NMLS has a consumer access site so you can verify a mortgage company or individual.

Who would you rather assist your clients?  A professional who meets a higher standard of licensure or one who is simply registered?

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