Massachusetts Division of Banks Announces Enhanced Participation in NMLS
BOSTON - February 22, 2012 - Commissioner of Banks David Cotney announced today that starting in April 2012, the Massachusetts Division of Banks will expand its use of the Nationwide Mortgage Licensing System and Registry (NMLS).
In addition to mortgage companies and loan originators which are already in the system, NMLS will now be used to manage other non-depository financial services industries, including consumer lending, money services businesses and debt collection.
NMLS, which is owned and operated by state regulators, allows companies to apply for, update and renew their license authorities in one or more states conveniently and securely online. The system began operations on January 2, 2008, and currently all 50 states and six federal agencies use NMLS to accept and process license applications and registrations.
"The Division of Banks is proud to expand its use of NMLS," Cotney said. "This system has proven to be an effective tool in mortgage supervision by streamlining the regulatory process and enhancing consumer protection. The expansion of NMLS will now bring the efficiencies and improved oversight to additional financial services industries."
The Division expects that these industries will see many benefits to NMLS, including an improved ability for licensees to manage their information electronically, and streamlined branch license and renewal application processes.
"This change will allow us to manage and use information in a more efficient and streamlined manner," said Barbara Anthony, Undersecretary of Consumer Affairs and Business Regulation. "This is another important tool that will enhance our abilities to protect consumers in the financial services marketplace."
Starting in April 2012, the Massachusetts Division of Banks will require all companies licensed as Debt Collectors, Small Loan Companies, Motor Vehicle Sales Finance Companies, Retail Installment Sales Finance Companies, Insurance Premium Finance Companies, Check Cashers, Check Sellers and Foreign Transmittal Agencies to have a complete record in NMLS and submit it to the Division of Banks for approval.
Additionally, any company wishing to apply for a new license must do so through NMLS starting in April 2012.
The Massachusetts Division of Banks will be issuing a letter to each licensee in March 2012 with detailed instructions for transitioning their company and branches onto NMLS.
More information about NMLS can be found on the Division of Banks' website by clicking on: Nationwide Mortgage Licensing System.