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MLO Licensing Review Next Steps Activity

TABLE OF CONTENTSHow to Use This DocumentHistory of LicensingNMLS, Licensing, and the State AgencyNMLS Account Management and System Navigation for Organization UsersNMLS Resource Center and SupportSAFE Act RequirementsWork List Management & AssignmentMLO License Applications – Industry PerspectiveRecord Access, Relationships, and SponsorshipLicense Item ManagementLicense StatusesReviewing MLO License ApplicationsReviewing a Criminal Background CheckReviewing a Credit ReportReviewing Individual AmendmentsTesting and Education InvestigationsAdverse and Final License StatusesUsing NMLS ReportsNMLS Consumer Access

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How to Use This DocumentDiscuss with your supervisor about your agency’s specific licensing policies and processes.

Since the information provided is designed to teach you about general best practices in mortgage licensing and does not account for your agency’s specific practices, you must discuss with your supervisor to determine how your agency applies the concepts discussed in each course.

Take notes on course material.In order to help guide your discussion with your supervisor and provide a place for you to record what you have learned from the course, this Next Steps Activity also provides a place for you to take general notes on the best practices described in each course.

Instructions Use the Table of Contents to navigate to the section of the document associated with the

course you are currently taking. As you are taking the course, record any general notes you may have in the “General

Notes (Optional)” section. Throughout the course, there will be Next Steps that correspond to a section of this

document that you must complete. Record your notes on the best practices described for each Next Steps topic and use these

when discussing the Next Step with your supervisor. Record your notes from your discussion with your supervisor. Be sure to provide

accurate, well-researched responses. Save a copy of the document to your computer. When you have completed all courses in the learning plan and completed the Next Steps

activity, submit it to your supervisor for evaluation and approval. Once you have received approval from your supervisor, go to the final “Next Steps” course

in the Learning Plan in the Learning Management System and submit your activity.Additional Information

For information on how to complete and submit the Next Steps Activity, refer to the Next Steps Quick Guide.

Questions? Send an email to [email protected].

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mailto:[email protected]

https://mortgage.nationwidelicensingsystem.org/slr/Documents/Next%20Steps%20Quick%20Guide.docx

https://mortgage.nationwidelicensingsystem.org/slr/Documents/Next%20Steps%20Quick%20Guide.docx

https://www.csbstraining.org/lms


History of LicensingPart Two: Pre-SAFE Act Licensing

Ask your supervisor if your agency was engaged in mortgage licensing prior to NMLS, and to what degree.

[Enter your notes on best practices from the course here, if applicable.]

[REQUIRED: Enter your notes from your discussion with your supervisor here.]

General Notes (Optional)

[Enter your general notes from the course here.]

Return to Table of Contents

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NMLS, Licensing, and the State AgencyPart Four: System Prioritization and Development Process

Speak to your supervisor about which conference calls and working groups you should be involved in and why. Some examples include: SRR Lawyers Committee, Mortgage

Call Report Working Group, Regulator Development Working Group (RDWG), Data Download Working Group.






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NMLS Account Management and System Navigation for Organization Users

Part One: Introduction

Speak to your supervisor to determine who your Account Administrators are.



Speak to your supervisor about the roles you will be or have been assigned. For those roles you do not have, speak with your supervisor to understand who has additional roles and what functions they support in NMLS (i.e., Once I complete a review do I

hand off to someone else to review, change the status, etc.). Also ask which notifications you may have been assigned to receive, and which Review Items you may

be assigned.






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NMLS Resource Center and SupportPart One: Regulator Resource Center

Speak to your supervisor to ensure you have access to the Regulator Resource Center. Ask which areas of the Resource Center your agency commonly uses. If you do not

have access to the Resource Center, find out why.






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SAFE Act RequirementsPart Two: Education

Speak to your supervisor about your agency's state-specific PE requirements.



Speak to your supervisor about your agency's state-specific CE requirements.



Part Three: Testing

Speak to you supervisor to determine if your agency has adopted the Uniform State Test (UST). If not, why?



Part Five: Criminal Background Check

Speak to your supervisor about your agency's criminal standards to determine if there are additional requirements or if requirements are more stringent than the SAFE Act

standards.



Speak to your supervisor to determine if your agency requires state-specific background check in addition to a federal CBC. If you do require a state-specific

background check, why?


[REQUIRED: Enter your notes from your discussion with your supervisor here.]7


Part Six: Financial Responsibility & Fitness

Speak to your supervisor to determine how your agency determines financial fitness. What are the credit report review standards used if any?



Part Seven: Mortgage Call Report

Speak to your supervisor to determine which of your agency’s license types are NOT required to complete the Mortgage Call Report. If there are any, ask why they are

exempt.






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Work List Management & AssignmentPart Two: Agency Work List & Assignment vs My Work List vs Review Item Assignment

Have a discussion with your supervisor on how your agency uses the work lists. Specifically:

Does your agency use the wok list assignment feature in NMLS? Are you expected to assign work to yourself or other members of the agency? Which work list are you expected to work off of on a regular basis? When work is complete, what is typically done (i.e., mark item as complete, archive, do

not archive?)






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MLO License Applications – Industry PerspectiveGeneral Notes (Optional)



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Record Access, Relationships, and SponsorshipPart Two: Required Information

Speak to your supervisor to determine your agency's sponsorship requirement for individual licensees.



Part Five: Regulator Perspective

Speak to your supervisor to determine if your agency allows multiple sponsorships per license. Why or why not?



Speak to your supervisor about your agency's process when reviewing and making a decision on a sponsorship request.



Speak to your supervisor about whether your agency allows for the use of the "Approved - Inactive" status for individual applicants without an active sponsor. If not,

why?






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License Item ManagementPart Two: System-set vs. Regulator-set License Items

Speak to your supervisor about the licensing deficiencies that may result in the creation of license items.



Part Three: Adding License Items

Speak to your supervisor to determine if your agency enters notes and uses the Regulator Log to track review process. If not, why?



Speak to your supervisor about whether your agency has standard license item language, and whether it includes contact information for the licensee should they

have questions. If not, what is the expectation for language used?



Speak to your supervisor about your agency's usage of the "Due Date" field when adding license items to track in the Reminder List. If your agency does use due dates, how do you determine the timeframe required for response? For example, do you use

a different due date depending on the severity of the license item? If you don’t use due dates, why not?



Part Four: Potential Impacts of Adding a License Item

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Speak to your supervisor about your agency's work process for adding license items.



Part Five: Managing and Clearing License Items

Speak to your supervisor about your agency's method to follow-up and clear license items.






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License StatusesPart Three: Updating License Statuses

Speak to your supervisor about when your agency updates license status: As part of the application review process Ad hoc Using the Bulk License Status Update functionality



Part Four: Internal & External Notes, Dates

Speak to your supervisor about your agency's usage of Internal and External Notes when updating license statuses.



Ask your Supervisor when you should make an external note “private.”



Speak to your supervisor to identify whether your agency has any licenses that are currently transitioning to NMLS and how that process works.



Part Five: Adverse Statuses

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Speak to your supervisor to determine your agency's process when dealing with revocations.



Part Nine: Conclusion

Speak to your supervisor to determine which license statuses your agency uses and when certain statuses are used (refer to the License Status Definitions document).






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https://extranet.csbs.org/NMLS/Regulators/Knowledge/Documents/License%20Status%20Definitions%20for%20Regulators.pdf


Reviewing MLO License ApplicationsPart Two: MLO Application Review Process

Ask your supervisor to give you a high-level overview of your agency’s work process for reviewing a new application in NMLS.



Part Three: Submission of the Individual Form (MU4)

Discuss with your Supervisor to determine if any parts of the Individual Form are not required by your agency.



Discuss Sponsorship Status and how they are used with your supervisor.



If a regulatory action is attached to the applicant’s record, how do I manage this during the review process?



Speak with your supervisor about the “View Federal Information” user role and if this is something you need to have. Keep in mind that users assigned this role are subject to

NMLS Two-Factor Authentication.



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Discuss your agency’s policies for incorrect license type applications with your Supervisor.



Ask your Supervisor how applications from non-US Citizens are processed. Is it different than for US Citizens? If so, how?



Speak to your Supervisor to determine how your agency handles the employment history section, simultaneous employers and the address listed in employment history.



Speak to your supervisor to determine your agency’s work location requirement.



Discuss with your Supervisor how your agency deals with separate businesses that may overlap.



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Ask your Supervisor about the unique situations that may present themselves in the Disclosures and what documents your agency would normally expect to see. For

example, how does your agency handle disclosures about guilty pleas that occurred in a military court? Or, familiarize yourself by asking other regulators who deal with these

issues.



Speak to your supervisor and determine which disclosure answers may require additional investigation or may prevent approval in your state.



Speak to your supervisor and determine which disclosure answers may require additional investigation or may prevent approval in your state.



Ask your supervisor if you are expected to review credit reports. If so, see the Reviewing a Credit Report course in the Resources. If not, gather an understanding the

proper credit report escalation chain within your agency.



Ask your supervisor if you are expected to review CBC results. If so, see the Reviewing a Criminal Background Check course in the Resources. If not, gather an understanding

the proper CBC escalation chain within your agency.



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MLO Licensing Review Next Steps ActivityPart Six: License Application Decision

Ask your supervisor about the denial and revocation procedures, as well as the expected deadlines for turnaround review times, for your agency.






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Reviewing a Criminal Background CheckPart One: CBC Overview

Ask your supervisor and legal counsel about how your agency deals guilty pleas that are later vacated in favor of lesser charges.



Part Three: CBC Reports and System Email Notifications

If you will be responsible for reviewing CBC results, verify with your Account Administrator that you are assigned to receive the RAP Received for a Previously Cleared Individual email notification. What should you do when you receive it?



Part Six: Handling CHRI

Ask your Supervisor if there are any restrictions to accessing a CBC wirelessly.




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Reviewing a Credit ReportPart Three: Credit Report Requirements

Review your state licensing checklist to determine what you require from licensees related to credit.



Part Six: Reviewing and Discussing Credit Report Content

If credit issues are identified, what documentation is required from the licensee? How do you communicate those requirements to the licensee? For example, do you include

"private notes" in the license item external note field?



Discuss with your supervisor what payment plans and documentation is acceptable for past due accounts, if any?



Ask your supervisor what your agency’s policies are with regard to foreclosures.



Speak to your supervisor about your agency's policies on outstanding student loans and child support violations.



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Reviewing Individual AmendmentsPart One: Amendments Overview

Speak to your supervisor about whether your agency charges for MLO amendments and what, if anything, is required outside of NMLS for MLO amendments.



Speak to your supervisor about your agency’s process for handling MLO employment changes, especially the handling of sponsorship removals.



Speak to your supervisor about what are the most common mistakes when filing an Individual (MU4) amendment.



Part Two: Amendments in the Work List

Speak to your supervisor about how your agency manages MLO amendments in the work list.






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Testing and Education InvestigationsPart One: Introduction

Ask your supervisor to give you a high-level overview of your agency’s work process with regard to Testing and Education Investigations.



Part Six: Test Invalidation

Speak with your supervisor to determine the effects of a test invalidation on a licensee.



Speak with your supervisor about how your agency handles invalidated test results for both current licensees and applicants.



Speak with your supervisor about how your agency handles applicants or licensees with T&E Investigations.






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Adverse and Final License StatusesPart Two: Managing Surrender Requests

Speak to your supervisor to learn about how surrender requests affect corresponding branch licenses and MLO sponsorships and license statuses.



Part Three: Managing Withdrawal/Cancelation Requests

Speak with your supervisor to discuss agency-specific processes for these statuses (include a list).



Part Four: License Surrender/Withdrawal at Regulator Request

Speak to your supervisor to learn the proper usage of the “Terminated-Ordered to Surrender” and “Withdrawn-Application Abandoned” statuses.



Part Six: Denied and Revoked

Speak to your supervisor to learn the proper usage of the “Denied” and “Revoked” statuses.



Part Seven: Renewal Related Statuses

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Speak to your supervisor to learn about your agency’s renewal and reinstatement deadlines.






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Using NMLS ReportsPart One: Regulator Reports Overview

Speak with your supervisor to find out which report(s) your agency commonly runs, and for what purpose.






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NMLS Consumer AccessGeneral Notes (Optional)



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