What is it?

The Nationwide Mortgage Licensing System provides a national database of all loan officers and brokerages in participating NMLS states. The NMLS also provides a set of uniform forms, so if a loan officer or broker is applying for a license in several NMLS states, they only need to fill out one set of forms. 

What isthe NMLS Supposed to Acheive?

Bottom line is that the NMLS is a reposatory of information, that provides a national database of all loan officers in participating NMLS states. If a loan officer where to commit fraud in one state - they would be barred from doing business in all NMLS states. Previously, if a loan officer where to lose there license in one state, there was nothing stopping them from moving and gaining their license in another state. 

Is the NMLS government Run?

One would assume so, but NO the NMLS is privately run by the State Regulatory Registry LLC (SSR). The SSR was formed by the Conference of State Bank Supervisors (CSBS) in cooperation with the American Association of Residential Mortgage Regulators (AARMR).

Does the NMLS Set the Licensing Regulations                       

The most commo0n misunderstanding when it comes to the NMLS is that they set a uniform set of regulations that all the participating NMLS states abide by.  Every state still sets their own set of regualtions governing brokers and loan officers. For example; Connecticut, and NMLS state, requires loan officers to pass an exam, Deleware, also an NMLS state doesn;t even require individual loan officers to be licensed.

All the NMLS does is provide a standard set of forms that each state usues. This cuts down on having to fill out essentially the same form for every state one applies for a license in. 

Participating NMLS States

Arizona
Arkansas
Connecticut
Delaware
Georgia
Idaho
Indiana DFI
Indiana SOS
Iowa
Kentucky
Louisiana
Massachusetts
Michigan
Mississippi
Nebraska
New Hampshire
New York
North Carolina
Pennsylvania
Puerto Rico
South Dakota
Rhode Island
Tennessee
Vermont
Washington
Wyoming