What is the NMLS, and how can I get my license?

You need training and licensing if you want to work in the mortgage industry as a loan officer. Loan officers and mortgage loan originators are licensed in the United States through the Nationwide Mortgage Licensing System, or NMLS. But what is the NMLS used for, and how can a license advance your real estate career?

What does NMLS stand for?

NMLS is an acronym for the Nationwide Mortgage Licensing System. Created in 2008, NMLS is a comprehensive licensing system for all federal- and state-licensed mortgage loan originators, mortgage lenders, mortgage brokers, and mortgage companies.

Nearly 640,000 companies and individuals are registered on the NMLS and use it to manage their business licensing and registration

The database identifies each licensed loan originator or company with a unique NMLS number.

Mortgage lenders and individual mortgage originators must stay compliant, renew their state licenses, and update the NMLS.

NMLS also has a free, public-facing portal at NMLSConsumerAccess.org, where anyone can look up any licensed originator to see their licenses and where they’re authorized to do business.

How does the NMLS work?

Any applications for state licenses, documentation, or other required forms for licensing are filed through the NMLS, whether you’re a mortgage license officer or a lender. Each loan officer or lender receives a unique identification number to associate the records with that individual or company.

For example, Rocket Mortgage® has NMLS #3030.

All new applications, changes, or renewals to licensing are processed through the NMLS. This allows for a quick lookup of individual licenses and lets the license persist even if the individual changes companies. NMLS makes maintaining licensing possible within the mortgage industry.

How does the NMLS help you build trust with clients?

From a home buyer's perspective or someone looking to refinance, NMLS Consumer Access allows them to look and vet their originator and make sure they’re licensed, no matter which lender or mortgage broker they work with.

They can start by searching for the NMLS ID number of their lender or originator. The information that comes up can help them make an informed decision about who they work with.

The type of information that can come up in an NMLS search will vary a bit based on where the banker is licensed. States often have different requirements.

However, at a minimum, they can see their licensing information in one or more states. Additionally, they can file a complaint to the relevant regulatory agencies. They can also see if they have dealt with regulatory action in the past.

How do I get an NMLS license?

When Congress passed the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, known better as the SAFE Act, requiring states to license mortgage loan originators. The act also required state agencies to participate in and share licensing information through NMLS.

To get an NMLS license, originators must complete 20 hours of educational training, pass a national mortgage test, credit report review, and an FBI criminal background check. They also must complete 8 hours of continuing education a year to maintain their state licenses.

1. Complete required courses

Those who aren’t already licensed must complete a course that meets the SAFE Act pre-licensing education requirements. It’ll typically take you 20 hours. Topics include relevant federal laws, ethics, and the duties of a mortgage loan officer.

There also may be state-specific requirements. For example, Arkansas requires an additional 8 hours of continuing education, broken down by type of learning.

2. Pass a criminal background check

To get licensed, states typically require a criminal background check. This will typically take place at a local police department or similar facility. Once a criminal background check is submitted, the NMLS will help find a location to submit fingerprints.

3. Apply with the NMLS

Once you’ve passed the national and uniform state components of the SAFE mortgage loan originator test and meet the requirements, you’ll need to submit your information to the NMLS.

Head to the appropriate section of the NMLS website and complete the required sections of the individual form, MU4. During the application process, applicants can request a criminal background check and authorize a credit check through the NMLS.

4. Continue your education to maintain your license

A loan officer must complete continuing education requirements each year to keep an active license. Some states may have additional requirements, such as not taking the same courses two years in a row. Keeping up with continuing education requirements is important to ensure the MLO license is active.

The bottom line: Take advantage of the NMLS

The NMLS is a one-stop database for state licensing information for mortgage lenders and loan officers. NMLS maintains licensing information and allows lenders and consumers to check the credentials of loan officers they work with. Home buyers and refinancers can use this system to evaluate the lenders and loan officers they work with.

If you’re looking to buy a home or refinance, you should now have the tools to gain confidence in the mortgage professionals you work with, now, you know what the NMLS is. Apply online or call (833) 326-6018. If you would rather work with someone in your community, feel free to search for mortgage brokers near you.