NMLS is the abbreviation for Nationwide Mortgage Licensing System or Nationwide Multistate Licensing System. Do you want to be a mortgage loan originator? Then, you must apply for a suitable license through NMLS if you are in the USA.
The NMLS authority acts as a record system for state agencies’ financial and non-depository services registration and licensing, and this includes the U.S. Virgin Islands, the District of Columbia and the U.S. Territories of Puerto Rico and Guam. However, companies or individuals must pass an NMLS credit requirements check to qualify for the license.
Yes, NMLS needs you to submit a copy of your credit report while you apply for a license or amend or renew an existing license. You might have doubts regarding NMLS credit score requirements. This guide will clarify all your doubts.
After all, it’s best to understand such financial requirements before you apply for a license. You might waste your resources and time if you are unprepared. Let’s get started.
NMLS Credit Report Requirements
Do you need to present your credit report to receive the required licensure from NMLS? As per NMLS credit score requirements and rules, any state-licensed MLO or Mortgage Loan Ordinator must use NMLS and complete the authorisation procedure for the credit report.
So, you must complete the credit report authorisation procedure through NMLS even though your state regulators received your credit information earlier. Regarding a state-licensed company, responsible individuals have to complete an MU2 Form to use NMLS to validate the credit report. Nevertheless, Federally registered mortgage loan originators don’t require a credit report authorisation.
Remember, NMLS possesses the authority to grant or decline a licensure request. In addition, NMLS conducts the following 3 types of fees for issuing, amending, or renewing a license:
- Initial setup fee
- Annual processing fee
- MLO change of sponsorship fee
However, NMLS offers the following kinds of licenses to respective applicants:
- Escrow Business License
- Mortgage Servicer License
- Consumer Loan License
- Mortgage Broker License
- Deferred Deposit Lender’s License
- Sales Finance Company’s License
- License for Independent Contractor Entity Branch
- Mortgage Loan Originator’s License
- Mortgage Lender Branch License and more
Apart from NMLS credit score requirements and checks, NMLS runs the inspections mentioned below:
- Regulatory policies governing NMLS
- NMLS Public Comments
- ‘NMLS Development Decisions
- Suppression requests regarding NMLS Consumer Access
- Prioritisation of NMLS Functionality
- NMLS System Modernisation, including the State Examination System application
- B2B Subscriptions
Steps to Authorise a Credit Report via NMLS
NMLS credit score requirements clearly state that MLOs need to send their credit reports to NMLS. How can you authorise your credit report through NMLS? Here’s what you must follow to complete the procedure:
Find Out if You are Eligible
You may be considering requesting your credit report for the authorisation process. However, do you need to provide your credit report for this? So, you must check whether you are eligible for the license you will apply for.
Go to the official website of the NMLS Resource Centre and go through the mentioned standards to find out whether you are eligible or not. Also, don’t forget to check if you must submit your credit report for the procedure.
Identify Who Will Pay the Required Fees
Most companies wish to cover NMLS credit report requirements and fees on behalf of the control individual or MLO. Hence, you must ensure whether the company will pay for the process or you need to take responsibility for the payment.
On the other hand, the company should initiate the credit report if it’s not a license for an individual. Then, the company needs to send it to the concerned person to attest and accomplish the Identity Verification procedure. All these tasks should be completed before proceeding with any payment and submission of documents.
Associated fees can hit you if you initiate the credit report request. Therefore, make sure that the company always start the credit report request. However, the cost to request a credit report is around $15. So, consult the company’s authority to clarify who will pay for the report.
Initiate a Credit Report Request
So far, you know that a company can only request a credit report if it’s not an individual requesting a license. However, a company must follow the guidelines below if it’s paying for your credit report:
- Visit the official website of the NMLS Resource Centre.
- Next, hit the ‘Log into NMLS’ option from the top-right corner of the screen. Enter your login credentials to sign into your account.
- Afterwards, click the Filing tab and choose Individual from the sub-menu.
- Look for the MLO by First and Last Name or NMLS ID.
- Opt for ‘Create New Filing’ or ‘Edit’ if your filing remains pending.
- After that, select the ‘Credit Report Request’ button from the left panel.
- Check the box next to ‘Request a new credit report’ and click Save.
- Then, choose the ‘Attest and Submit’ option from the left navigation menu.
- Finally, click the Request Attestation button.
After this, the concerned authority of NMLS will contact the MLO via email and make the person go through all the mandatory NMLS credit score requirements and Identity Verification processes. For detailed information, you can consult the MLO Credit Report Submission Quick Guide instructions.
What if You Need a Credit Report on Your Behalf?
If you want to request a credit report on your behalf, the process requires additional steps along with the previous steps. Start by visiting the NMLS Resource Centre website and click the Login option. Ensure you log into your account after providing all the required details.
Now, you have to go through the following guidelines:
- Choose the Filing tab from the upper right corner after you log into your account.
- Next, select Individual from the sub-menu and click on the ‘Review and Attest’ button to make changes in the MU2 Form.
- Ensure that you check all sections of the MU2 Form to avoid unnecessary hassles.
- Next, opt for the ‘Credit Report Request’ option from the left navigation panel.
- Hit the icon right next to the sandbar to activate the completeness check.
- After that, check the box next to ‘Request a new credit report’ and click Save.
- Before submitting this filing, click the link, ‘Identity Verification (IDV)’.
- Check the box next to the statement, ‘I agree to TransUnion Smartmove Service Agreement’. Continue to click on the ‘I Agree’ button.
- Read all the information that appeared on the screen for accuracy. Next, click Continue and answer the identity verification questions.
- Then, click Continue, followed by Finish.
Now, you can select the ‘Return to the Filing’ option and hit ‘Attest and Submit’ from the left navigation panel. You will notice that a legal attestation pops up. Finally, you can check the verification box and submit the filing to your regulator.
Proceed with IDV or Identity Verification
NMLS credit report requirements have mentioned mandatory identity verification. The concerned individual has to answer some specific questions. For sure, only the individual knows the correct answers to those questions. So, MLOs and control persons must personally appear for this IDV process after logging into the NMLS portal.
On a related note, a company can’t answer IDV questions even if it is paying for a credit report request. You can also get help from www.annualcreditreport.com if you want to solve issues with your credit report and look for discrepancies.
Additionally, you must lift any security freeze before requesting a credit report. Otherwise, it can void the MU2 or MU4 Form filing. Moreover, you must submit the form again after the freeze has been lifted.
Reviewed by Regulator
After you complete the procedure, every state regulator will individually review the submitted credit information. What are the minimum NMLS credit score requirements, by the way?
Fortunately, NMLS doesn’t set any minimum or standard credit score. However, every state regulator might have developed standards and processes for examining credit details and determining the basic financial responsibility to get licenses.
So, can you become a Mortgage Loan Originator with bad credit scores? The respective state state decides the minimum credit score to apply for the required license. However, the following states are quite generous about granting margin credit scores:
- Florida
- Ohio
- Virginia
- New Jersey
- Alabama
- California
- Kansas
On the other hand, few states can be strict regarding minimum credit score requirements. For instance, Wisconsin might disqualify you because of outstanding judgements. So, you should contact your state’s licensing team if you have bad credit scores.
How Much Does NMLS Charge for State Licensure?
For company or MU1 filing, initial setup and annual processing fees are $100 each. At the same time, the MLO change of sponsorship will cost you $30 for MU1 filing. Additionally, MU3 filing requires $20 each for initial setup and annual processing fees.
Moreover, individual or MU4 filing requirements are $30 each for the initial setup and annual processing fees. However, MU3 filing and MU4 filing don’t need any charge for the MLO change of sponsorship. Hopefully, the guide helps you understand NMLS credit score requirements and request procedures.
