RICHMOND — The State Corporation Commission's Bureau of Financial Institutions (Bureau) will join the Nationwide Mortgage Licensing System (NMLS) on August 3, 2009. The system will be used to license mortgage loan originators in accordance with new provisions of Virginia law and the Federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act).

Mortgage loan originators are required to be licensed as the result of legislation adopted by the 2009 Virginia General Assembly. The new law prohibits an individual from acting as, or holding oneself out to the public as being, a mortgage loan originator on or after July 1, 2010, unless licensed by the State Corporation Commission (SCC) and registered in the nationwide mortgage licensing system.

Virginia Commissioner of Financial Institutions E. Joseph Face, Jr., says, “This is the most significant piece of mortgage legislation in Virginia in the last twenty years.” He added, “The Bureau is proud to be a part of the new regulatory framework. The national registration system links the Bureau with other states to help us supervise mortgage licensees and protect consumers.”

NMLS began operations on January 2, 2008. It was developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. The NMLS allows mortgage loan originators to apply for and manage their licenses electronically.

Currently, 27 states are using the system to accept and process national, uniform license applications. Licensees are able to electronically manage a single record in the NMLS to apply for, amend, renew, and surrender licenses in one or more participating states.

Mortgage loan originators operating in Virginia will be able to complete an application for a license in the NMLS beginning August 3, 2009. Upon completion, the NMLS will submit the application to the Bureau for investigation. If the Bureau determines that the licensing requirements are met, a license will be granted.

Any individual wishing to apply for a mortgage loan originator license pursuant to Chapter 16.1 of Title 6.1 of the Code of Virginia can do so through the NMLS beginning August 3. Applications for Virginia mortgage lender/broker licenses will not be processed through the NMLS at this time, but will continue to be processed directly by the Bureau.

Regulations to carry out the new requirements of the law governing mortgage loan originators have been proposed by the Bureau. Interested parties have an opportunity to comment on the proposed SCC rules through June 22, 2009.

More information can be found on the Bureau’s website at http://www.scc.virginia.gov/bfi. Questions can be directed via e-mail to mlo@scc.virginia.gov or by calling 804-371-0484.

Complete information about the NMLS can be found online at www.stateregulatoryregistry.org/NMLS.

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Case Number BFI-2008-00290
Proposed rules governing licensing of mortgage loan originators