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State Regulators Seek Public Comment on Proposed Licensing Process for Modernized NMLS

Washington, D.C. – The Conference of State Bank Supervisors (CSBS) is seeking input from Nationwide Multistate Licensing System (NMLS) industry users on proposed requirements that will drive a standardized approach to the licensing process in the modernized NMLS. 

Public comments will be accepted until May 31, 2021 and will be published here.  

Establishing a standardized licensing approach based on uniform requirements across all state nonbank financial regulatory agencies is an essential step towards building a modernized NMLS – one of CSBS’s Networked Supervision priorities. The new NMLS will be more automated, data driven, and more user friendly for applicants, licensees and regulators.  

Key components of the proposal include:  

  • A three-part licensing framework that distinguishes requirements as core, business-specific and license-specific, with the goal of creating uniform license requirements and reducing variations among state agencies as much as possible 
  • A listing and description of each core requirement as it applies to companies and individual licensees   
  • An overview of the identity verification process users will complete when creating an account in the new NMLS    

“State agencies are evolving nonbank financial regulation by creating a system that preserves local accountability while also moving towards a more coordinated, standardized approach to regulation,” said CSBS President and CEO John W. Ryan. “This shift will streamline the licensing process for both state agencies and licensees. We welcome the input of industry as vital stakeholders of NMLS.”      

The money services businesses (MSB) industry will be the first industry to transition to the modernized NMLS, with implementation expected to occur in 2022.  

In addition to the MSB industry, currently NMLS is used to manage licensing for the mortgage, debt and consumer finance industries. Both state and federal use of NMLS for mortgage loan originators was mandated by the SAFE Act following the 2008 financial crisis.        

The full proposal is available here on the Proposals for Comment page of the NMLS Resource Center.   


Media Contact: Catherine Pickels, 202-728-5734, cpickels@csbs.org  

Twitter: @CSBSNews 

The Conference of State Bank Supervisors (CSBS) is the national organization of bank regulators from all 50 states, American Samoa, District of Columbia, Guam, Puerto Rico and U.S. Virgin Islands. State regulators supervise roughly three-quarters of all U.S. banks and a variety of non-depository financial services. CSBS, on behalf of state regulators, also operates the Nationwide Multistate Licensing System to license and register non-depository financial service providers in the mortgage, money services businesses, consumer finance and debt industries. 

 

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