Consistency & Timeliness are Key
How accurate is your current licensing information?
Licensees must report accurate and current information when filing registrations and licenses. To ensure accurate information, several states require their licenses to be filed through the Nationwide Multi-state Licensing System (NMLS). Within NMLS, company information is gathered based on the requirements of each jurisdiction. Individual information for owners, officers, directors and managers/qualified individuals is also collected and stored.
Is your licensing information 100% consistent?
Since all information you submit is viewable by multiple state regulators, it is crucial that your information is consistent across your licensing scope.
While NMLS is not a substitute for understanding the licensing requirements of each state, it is a platform that is visible to all the states that use it for their licensing. The goals of NMLS include:
- Improve mortgage, consumer finance, debt, and money services industry supervision,
- Heighten communication across states,
- Increase consistency in licensing requirements, and
- Automate processes to the greatest degree possible.
Consistency and Timeliness
At the time of initial filing, a company is required to submit corporate data including but not limited to:
- Corporate officers
- Direct owners
- Indirect owners
- Collection manager/qualified individuals
When changes occur to a company’s corporate structure, it is critical to notify state regulators immediately or in advance.
In addition, individuals within the company structure are required to answer disclosure questions and these questions must be maintained and up-to-date. To ensure your licenses are up to date in each state, Cornerstone can perform a formal review.
Any discrepancy in reported information can trigger an alarm to inquisitive regulators who often share this newfound information with other state regulators. The NMLS website reminds business, “All states share the same information in NMLS about licensees. If one state does not accept the information on an applicant’s filing or does not accept a license amendment submitted by a licensee, the entity has the choice of foregoing licensure in that state or changing their record for all states.”