The Nationwide Mortgage Licensing System & Registry (NMLS) has released a proposed rule for public comment that would allow for the reporting of state regulatory actions against companies and individuals on the NMLS consumer access website.
The goal in developing the reporting functionality would be improve transparency and information available to consumers, to facilitate for the sharing of information among state regulatory agencies and to meet the SAFE Act mandate to provide easily accessible information to consumers regarding publicly adjudicated disciplinary and enforcement actions against licensed entities and individuals.
Title V of the SAFE Act requires the NMLS to provide easily accessible information to consumers that is offered at no charge and utilizes electronic media. The information is required to include employment history and information regarding publicly adjudicated actions against loan originators. The requirement extends to both state-licensed and federally registered mortgage loan originators. Under the SAFE Act, state agencies are required to report enforcement actions and other relevant information to the NMLS. For federally registered originators, the Consumer Financial Protection Bureau is responsible for developing the functionality for reporting regulatory actions.
The information reported to the NMLS is intended to be freely shared among state and federal mortgage regulatory officials without the loss of privilege or confidentiality protections. Individual states, based upon their own statutes are able to determine which enforcement actions should be publicly reported to the NMLS. Additionally, states will be provided with the ability for regulators to input non-public information that is intended only to be shared among regulators or employees of that agency.
The period for public comments regarding the development of this reporting functionality will be open until September 20, 2011. Comments can be emailed to comments@stateregulatoryregistry.org, or mailed to:
Regulatory Actions Public Comments
Attn: Tim Doyle, Vice President
State Regulatory Registry
Conference of State Bank Supervisors
1129 20th Street, N.W.
9th Floor
Washington, D.C. 20036-3403
