Heads Up Licensed LO’s – You’ll Need NMLS Credit Authorization starting 11-1-10

NMLS Requiring Your Credit Report Authorization – November 1, 2010. 

 One of the provisions of the National Mortgage Licensing System is that loan officers must be “financially responsible”.  At the time, everyone wondered what the heck that meant?

 Well, you knew it was going to happen.   The NMLS has announced that beginning on November 1st, 2010, all licensed loan officers (not registered) must authorize them to pull a credit report on YOU—regardless of what your state’s requirements—and even if your credit was previously reviewed. 

 If you will be applying for a license in the future, you must authorize the credit report pull as the time you apply.

 Here’s how it will work:

 You’ll have to log in your NMLS account.

 You will be asked some questions to prove our identity. These are personal questions so your company will NOT be able to answer them for you.  Questions that might be asked would be previous addresses, balances on loans, current or previous phone numbers—things that only you would know.

The fee is $15.

 The report will be considered “soft pull”; it will be thru TransUnion, using Vantage Score® and will be a singe report.  (Hint, pull your own TransUnion report and see exactly what you will need to do to fix any errors.)

 The NMLS will NOT be pulling the credit report.  They are serving as your state’s clearinghouse and it will be your state who will access the NLMS database and randomly pull a credit report.

 There are a handful of states, whose rules state that they will be pulling a report by the end of 2010.  The rest of the states will be between January and March, 2011.

 And, you won’t know when your credit will be checked—it could be a year from now.

 It also means that you are giving them the authority to pull a credit report for years to come.

 More info will be posted in the November 10th issue of www.MortgageCurrentcy.com  At the NMLS website http://mortgage.nationwidelicensingsystem.org/profreq/credit/Pages/default.aspx

In addition, the “state agency checklist”  was updated on October 15, 2010.

 http://mortgage.nationwidelicensingsystem.org/profreq/Documents/SAFE%20Compliant%20Requirements.pdf

Your Credit Report vs. Your Mortgage License–Heads Up!

Beginning November 1,  NMLS says that all LO”s are supposed to log into NMLS and authorize TransUnion to send a credit report (electronically, within NMLS) to their regulator(s). “MLOs will have to answer 3-4 questions about themselves in order to verify their identity with TransUnion before the credit report is generated.

So,  what’s “wrong” about the way loan officers have to be licensed?  ..first you pay all that money, spend all that time getting your license and only AFTER you’ve done that…will they pull a credit report…too see if you can continue doing loans.   I’ve heard of loan officers who are “on probation” because they had a collection 3 years ago.  Another state has suspended a LO’s license because of back child support (yeah, the child support needs to be paid–but how can he if he’s not working?)

It’s the cart before the horse scenario.

While a company may pay for the credit report through NMLS, only the MLO will be able to complete the identity verification process.” http://mortgage.nationwidelicensingsystem.org/profreq/credit/Pages/default.aspx. for more info on what’s involved and the fees.  Be sure to click thru to the OTHER links  on the website page metioned above.

I recommend that you check out your state’s “financial responsibility” measuring stick.  Your report will be sent to your state and they will contact you if problems. 

Keep up to date on all the rules and regulations with www.MortgageCurrentcy.com.  Try for $1 (just one buck)…