Washington, D.C.—The Conference of State Bank Supervisors (CSBS) announced today the formation of a limited-liability company to run a national mortgage-licensing system that is being developed by state mortgage regulators.
The announcement follows a 21-month effort involving CSBS, the American Association of Residential Mortgage Regulators (AARMR) and the industry to develop an online licensing system using uniform mortgage license applications. These application forms are currently being used by several states for new license applications. In addition, the system will have a central repository of licensing and publicly adjudicated enforcement actions.
The system will be used by state residential mortgage regulators to process licenses by mortgage lenders, brokers and/or professionals. The system will offer consumers an online public database disclosing the licensing status of firms and individuals, including any state enforcement history. The system is scheduled to go operational in January 2008.
The CSBS Board of Directors approved the organization of State Regulatory Registry LLC (SRR) on Sept. 21. SRR will be governed by a five-member Board of Managers. Idaho Director of Finance Gavin M. Gee will serve as chairman. Other members of the Board include Iowa Superintendent of Banking Thomas B. Gronstal, North Carolina Commissioner of Banking Joseph A. Smith Jr., Massachusetts Commissioner of Banks Steven L. Antonakes, and Maryland Director of Non-Depository Examinations George Kinsel. CSBS President and CEO Neil Milner and Senior Vice President Bill Matthews, serve as ex-officio members of the Board. Matthews has been named president and CEO of SRR. Milner will serve as secretary, and Gronstal will serve as treasurer.
“The national licensing system and repository will enhance state regulators’ ability to protect consumers by increasing their ability to hold industry professionals accountable for their actions,” said SRR President Bill Matthews.
“The system will also streamline the licensing process for state agencies and the industry through the use of modern technology and centralizing redundant state agency operations,” said Matthews.
Currently 49 states license or register mortgage lenders or brokers. Some states have multiple agencies that regulate the industry.