APAC CIOOutlook

Advertise

with us

  • Technologies
      • Artificial Intelligence
      • Big Data
      • Blockchain
      • Cloud
      • Digital Transformation
      • Internet of Things
      • Low Code No Code
      • MarTech
      • Mobile Application
      • Security
      • Software Testing
      • Wireless
  • Industries
      • E-Commerce
      • Education
      • Logistics
      • Retail
      • Supply Chain
      • Travel and Hospitality
  • Platforms
      • Microsoft
      • Salesforce
      • SAP
  • Solutions
      • Business Intelligence
      • Cognitive
      • Contact Center
      • CRM
      • Cyber Security
      • Data Center
      • Gamification
      • Procurement
      • Smart City
      • Workflow
  • Home
  • CXO Insights
  • CIO Views
  • Vendors
  • News
  • Conferences
  • Whitepapers
  • Newsletter
  • Awards
Apac
  • Artificial Intelligence

    Big Data

    Blockchain

    Cloud

    Digital Transformation

    Internet of Things

    Low Code No Code

    MarTech

    Mobile Application

    Security

    Software Testing

    Wireless

  • E-Commerce

    Education

    Logistics

    Retail

    Supply Chain

    Travel and Hospitality

  • Microsoft

    Salesforce

    SAP

  • Business Intelligence

    Cognitive

    Contact Center

    CRM

    Cyber Security

    Data Center

    Gamification

    Procurement

    Smart City

    Workflow

Menu
    • Legal
    • Cyber Security
    • Hotel Management
    • Workflow
    • E-Commerce
    • Business Intelligence
    • MORE
    #

    Apac CIOOutlook Weekly Brief

    ×

    Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from Apac CIOOutlook

    Subscribe

    loading

    THANK YOU FOR SUBSCRIBING

    • Home
    Editor's Pick (1 - 4 of 8)
    left
    AI's Slow Growth in Law Firms

    David Furey, Chief Information Officer, Katten Muchin Rosenman LLP

    Enterprise Mobility Capabilities - Quick Wins!

    Michael Shea, CIO, Morgan, Lewis & Bockius LLP

    Our Calling and Time

    Vincent A. Marin, CIO, Sidley Austin LLP

    Unique Approach to Mitigate External Threats

    Curt Overpeck, CIO, Citizens Property Insurance

    Supporting Business with the Right Technology

    Andy Jurczyk, CIO, Seyfarth Shaw

    Innovation and Change, the challenge of getting it to stick

    Ross Forgione, CIO, Johnson Winter & Slattery

    Legal Knowledge Management and the Rise of Artificial Intelligence

    Christopher Zegers, CIO, Lowenstein Sandler LLP.

    AI Legal Counsel at Workplace?

    Lin Zhang, Head of Legal, China, CSL Behring

    right

    NMLS : The Perfect Role Model

    Debbie K. Hoffman, CLO, Digital Risk, LLC

    Tweet
    content-image

    Debbie K. Hoffman, CLO, Digital Risk, LLC

    As mortgage lenders continue to navigate our vastly changing regulatory environment, many have come to realize the critical role emerging technology plays in helping them remain compliant. Up to this point, the mortgage industry, like many other industries, has utilized enhancements to their technology as a nicety, rather than a necessity. However, with more recent technology improvements, such as a nationwide licensing compliance system, certain areas of the mortgage industry have exemplified how technology can be harnessed to redefine and advance the industry, while working within regulatory boundaries.

    Following the creation of the Nationwide Mortgage Licensing System Registry (NMLS), which is a national centralized database for financial services licensing, such as licensing for mortgage loan originators (MLOs), the CFPB enacted The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the SAFE Act) to mandate such a system for residential MLOs. The NMLS became available for online use in 2010, and currently all states use the system. NMLS has achieved recognition within the mortgage industry as an integral system of record for its consistency, convenience, transparency and efficiency.

    The NMLS is a perfect role model to be followed by other industries. First, a system modeled after the NMLS would be a central repository for massive amounts of data which could be utilized within the industry it would serve. Second, depending upon the industry, reporting could be made, as in NMLS, that would be able to disseminate comprehensive data over a wide geographical and user base. It provides qualitative and quantifiable information that would not otherwise be available. Finally, this effort on the part of any industry that is regulated, would be able to track trends as well as areas of concern and could, if it’s use were mandated, be able to provide data to the regulatory bodies tasked with oversight, a means to advise the users of necessary corrections which must be made to comply with current rules or regulations.

    NMLS provides consistency in mortgage licensing and education requirements, protecting consumers by assuring them that a licensed mortgage entity or individual has the baseline set of qualifications that are required to be licensed. Further, each state may elect to employ higher standards than those set forth in the NMLS, thereby possibly leading regulatory bodies to increase the national minimum requirements.

    With the knowledge that requirements may escalate in upcoming years, companies are incentivized to maintain very high standards of control. Such companies endeavor to anticipate and prepare themselves for changes in state rules. For example, Digital Risk ensures that its mortgage team members earn their NMLS licensure in multiple states and maintain their annual continued education requirements. The company also encourages employees to partake in proprietary mortgage trainings that aim to educate team members on material that will likely be included in coming escalated educational requirements. As companies like Digital Risk work to elevate employee education, such compliance will result in higher quality throughout the industry.

    "NMLS provides consistency in mortgage licensing and education requirements, protecting consumers by assuring them that a licensed mortgage entity or individual has the baseline set of qualifications that are required to be licensed"

    Another tremendous benefit of a nationwide system is transparency. The public availability of information in the NMLS provides for enhanced accessibility and accountability. Accessibility improves visibility into the mortgage service provider by allowing consumers to review the service provider’s credentials or deficiencies, and to evaluate the company’s quality and compliance. This transparency helps to establish trust between lenders and borrowers.

    A further advantage of this nationwide system is that it enhances supervision, and consequently, improves consumer protection. A nationwide system makes entities accountable to regulators, which have the power and means to keep those companies in check. For example, Digital Risk meets system requirements by using the information both within the NMLS system and the notices that are systematically sent out when any change is made to either an entity license file or an individual employee file to support many internal functions. Notifications on newly approved licenses received by Digital Risk are compiled and sent to all managers daily, to ensure they are aware of their current departmental/scope license capabilities. Furthermore, data from the NMLS approval e-mails is input into Digital Risk’s proprietary internal data system (LUSY) which, in turn, generates daily reports and sends them to each department for loan assignments. The company also uses system notices to track education requirements, license status any deficiencies that may exist that need to be corrected on a regular basis.

    Although there are many benefits to the NMLS system, there are areas that lenders need to keep in mind. For instance, the NMLS requires an annual processing fee to renew licenses. These fees can become costly for companies with several branch offices and many different state licenses. In addition, the universal expiration date for licenses is December 31, requiring all renewals to be processed at the same time, which could lead to delays in licensure delivery. Additionally, nationwide systems, such as the NMLS, provide for convenient and public information sharing, which could be problematic. The transparency provided by NMLS may be beneficial to borrowers, but detrimental to lenders, since competitors could use the system to identify and target talent.

    Despite the possible disadvantages that accompany the implementation of a nationwide system, it has proven to be a great success in the mortgage industry by revolutionizing the industry. The NMLS is a tremendous system with limited flaws, and these detriments are outweighed by the benefits it provides to users. The NMLS provides improved regulatory oversight, ease of information sharing, more competent professionals and efficiency, allowing lenders to offer enhanced customer experiences. This transparency and quality control makes individuals more amenable to working closely with lenders or other service-providers, thereby prompting a positive rapport among both parties. These benefits could translate seamlessly into other industries by implementation of a similarly structured system; however, the question remains as to whether more industries will model a similar type of system capable of bringing about a comparable level of efficiency and compliance

    tag

    Financial

    review

    Weekly Brief

    loading
    Top 10 Legal Tech Solution Companies - 2020
    ON THE DECK

    Legal 2020

    I agree We use cookies on this website to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies. More info

    Read Also

    Modernizing Lending Through Innovative, Secure and Scalable Technology

    Modernizing Lending Through Innovative, Secure and Scalable Technology

    Steven Meek, Chief Information Officer, Pepper Money
    Advancing the Chemical Industry through Digital Transformation

    Advancing the Chemical Industry through Digital Transformation

    Jan Mandrup Olesen, Global Head of Digital Business, Indorama Ventures
    Cultivating a Sustainable Future through Collaboration

    Cultivating a Sustainable Future through Collaboration

    Jiunn Shih, Chief Marketing, Innovation & Sustainability Officer, Zespri International
    Mastering Digital Marketing Strategies

    Mastering Digital Marketing Strategies

    Tasya Aulia, Director of Marketing and Communications, Meliá Hotels International
    Building a Strong Collaborative Framework for Artificial Intelligence

    Building a Strong Collaborative Framework for Artificial Intelligence

    Boon Siew Han, Regional Head of Humanoid Component Business & R&D (Apac & Greater China), Schaeffler
    From Legacy to Agility Through Digital Transformation

    From Legacy to Agility Through Digital Transformation

    Athikom Kanchanavibhu, EVP, Digital & Technology Transformation, Mitr Phol Group
    Change Management for Clinical Ancillary Teams: Aligning Practice with Policy and Progress

    Change Management for Clinical Ancillary Teams: Aligning Practice with Policy and Progress

    Ts. Dr. James Chong, Chief Executive Officer, Columbia Asia Hospital – Tebrau
    Digital Transformation: A Journey Beyond Technology

    Digital Transformation: A Journey Beyond Technology

    John Ang, Group CTO, EtonHouse International Education Group
    Loading...
    Copyright © 2025 APAC CIOOutlook. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Use and Privacy and Anti Spam Policy 

    Home |  CXO Insights |   Whitepapers |   Subscribe |   Conferences |   Sitemaps |   About us |   Advertise with us |   Editorial Policy |   Feedback Policy |  

    follow on linkedinfollow on twitter follow on rss
    This content is copyright protected

    However, if you would like to share the information in this article, you may use the link below:

    https://legal.apacciooutlook.com/cxoinsights/nmls-the-perfect-role-model-nwid-1699.html