MONTGOMERY, AL – July 16, 2009 – (RealEstateRama) — John Harrison, Superintendent of Banks, today announced that, starting October 1 the State Banking Department will begin participation in the Nationwide Mortgage Licensing System that was developed by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR).
Harrison said, “The State Banking Department is proud to be a part of the new regulatory framework being created by states for the improved supervision of the mortgage industry. The CSBS/AARMR Nationwide Mortgage Licensing System is the cornerstone of this framework that will allow Alabama mortgage companies to apply for and manage their license electronically. NMLS will allow the State Banking Department to provide better supervision of the mortgage industry by linking with other states to protect consumers.”
NMLS began operations on January 2, 2008 and currently has twenty-seven states using the system to accept and process national, uniform license applications. Licensees are able to electronically manage a single record in the Nationwide Mortgage Licensing System to apply for, amend, renew, and surrender licenses in one or more participating states.
Starting October 1, the State Banking Department will require all companies or individuals holding a license under the Alabama Consumer Credit Act or Mortgage Brokers Licensing Act, who broker or extend credit secured by residential real estate, to have a complete record in NMLS and submit it to the Alabama Banking Department for approval by December 31, 2009. Any company or individual wishing to apply for a license must do so through NMLS starting October 1, 2009. Mortgage Loan Originators must also apply for an Alabama Mortgage Loan Originator license through the NMLS.
The Alabama Banking Department will be issuing a memorandum to each licensee in July with detailed instructions for transitioning their company, branches and individuals onto NMLS.
Complete information about the CSBS/AARMR Nationwide Mortgage Licensing System can be found online at: www.stateregulatoryregistry.org/NMLS.