Best Practices When Dealing With The NMLS
Renewal season is upon us. As the year comes to a close, it’s important to ensure that all licenses managed on the Nationwide Multistate Licensing System & Registry (NMLS) are renewed within the designated timeframe. To navigate the renewal process smoothly, keep the following tips in mind:
Know the Requirements
Take the time to thoroughly review each state's September checklist to ensure that all necessary steps have been completed. This will provide an outline of the specific criteria that need to be met.
Confirm NMLS Account Access
Ensure that all employees have access to their NMLS accounts. This can be done by visiting the NMLS login page and entering the necessary credentials. Users can either contact their Company Administrator for a password reset or reach out to the NMLS Resource Center for support.
Keep NMLS Record Updated
Expedite the renewal process and avoid delays by ensuring that your NMLS record is up to date with the most current information. This includes details such as contact information, employment history, and any other relevant data.
Lift Credit Freeze
A credit check may be required as part of the renewal process, so it is essential to address any credit freezes in place. Contact the credit agency to temporarily lift the freeze and prevent delays when requesting renewal.
Check Fingerprint Expiry
For individuals such as natural person owners, mortgage loan originators, officers, directors, qualifying individuals, and branch managers, it is important to ensure that their fingerprints will not expire before the renewal. If the prints are over three years old and a new criminal background check is required, re-fingerprinting may be necessary.
Bond/Net Worth Requirements
Review state regulations and company activity to confirm that all bond/net worth requirements are in compliance.
Complete Continuing Education (CE) on Time
Make sure that all applicable Continuing Education is completed. Late completion of CE for Mortgage Loan Originators (MLOs), Qualified Individuals, and Branch Managers may impact your eligibility for renewal.
Clear License Items
Address any active license items and follow up with states for clearance. Failure to clear these items may impact your company’s eligibility for renewal.
Verify License Eligibility
Before submitting your renewal, ensure that all licenses held are in an eligible status for renewal. This means that the licenses should be active and in good standing. Any licenses that are not eligible may cause complications during the renewal process.
Know the Deadlines
It is important to be aware of the renewal submission deadlines, as they may vary by state. You can find the specific deadlines for all licenses managed on NMLS on the NMLS Resource Center website. Some states may have earlier deadlines in December, while others, like West Virginia, have a renewal deadline on November 1, coinciding with the start of the renewal period. Additionally, certain agencies may have specific reports or state-specific items due within the renewal period.
Follow-Up
The renewal process doesn't end with the submission of your renewal application. Stay proactive and follow up on any updates or changes. Some regulators may update their checklists throughout the renewal season, so it is essential to review these checklists periodically. Additionally, some state agencies may require approval by January 1 to continue licensable activities. Stay in touch with the appropriate state agencies to ensure that you meet all necessary requirements and receive the approvals needed to stay on track.
Navigating the NMLS renewal process can be complex and time-consuming. It’s important to be well-prepared and informed. Stay proactive, stay organized, and seek assistance when needed. If you are not a Cornerstone client and would like assistance with renewals, please reach out and connect with our licensing experts!
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