WASHINGTON (7/10/12)--Every July 1, the Nationwide Mortgage Licensing System and Registry (NMLS) updates its online Renewal Activity Report to help institutions to prepare for upcoming registration renewal season. However, this year the NMLS has warned that its renewal report carries some incorrect information on the renewal status of certain mortgage loan originators (MLOs) as "exempt" when, in fact, the renewal status was "eligible for renewal."
"Until this issue is resolved, institutions should not rely on this report to determine who is required to renew to maintain an active registration for 2013," the NMLS says on its website.
The NMLS is working to resolve the issue and said it will provide updates as appropriate on its Resource Center website (use the resource link below).
Title V of the 2008 Housing and Economic Recovery Act brought about the licensing and registration requirements for mortgage originators, and was the result of problems with mortgage lending, especially with subprime mortgage loans. Now, any individual who originates residential mortgages must annually register with the NMLS as a "registered loan originator."
MLOs have to renew their registration annually between Nov. 1 and Dec. 31 unless initial registration occurred less than six months prior to the end of the renewal period. In addition, credit unions' NMLS institution accounts must be renewed on an annual basis, regardless of when the institution's account was created.