Tennessee Department of Financial Institutions to Launch Nationwide Mortgage Licensing System

Monday, February 02, 2009 | 4:29am

NASHVILLE Commissioner Greg Gonzales announced today that the Tennessee Department of Financial Institutions will “go live” on the Nationwide Mortgage Licensing System (NMLS) effective February 1, 2009. NMLS is a system developed through multi-state cooperation and participation under the auspices of the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.

“This Internet-based system will allow mortgage companies and loan originators to apply for and manage their licenses electronically wherever they may reside across the country,” said Gonzales. “From a regulatory perspective, NMLS will provide the department enhanced supervision of the mortgage industry by linking with other states. Most importantly, it will enhance consumer protection with respect to the mortgage companies and individuals with which Tennesseans do business.”
 
Commissioner Gonzales added that all states are required to join NMLS under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E.), signed into law July 30, 2008. 
 
“The S.A.F.E. Act also requires that mortgage loan originators submit to fingerprinting for the purpose of a criminal background check, and demonstrate professional proficiency by passing a pre-licensure test, and meeting continuing education requirements,” said Gonzales. “The department has been working aggressively to ensure that Tennessee meets all of the federal mandates for S.A.F.E. Act compliance and that the requirements are fulfilled timely. In fact, the department implemented fingerprint-based background checks on January 1, 2009 for all new applicants for a mortgage loan originator registration certificate as well as for the managing principals of the companies for which the originator works. This is the first time the department has been authorized by law to conduct such background checks. Thousands of originators will be fingerprinted over the coming months and reviewed by the department. 
 
“What was only a concept approximately four years ago has today become a reality and the department played a key role in support of bringing that reality to fruition,” continued Gonzales. “The reality of a nationwide, Internet-based licensing system and central repository of information on individuals engaged in the business of making residential mortgage loans will be good for consumers and good for Tennessee.”
 
Tennesseans who wish to know more about the Nationwide Mortgage Licensing System may do so through the Department website at http://www.tennessee.gov/tdfi/

Financial Institutions