Regulatory Review, Reformatted

National Mortgage Professional

Authored Article


As 2021 runs in search of what’s new, we realize that the pandemic disruption has continued through 2021. The NMLS Ombudsman Meeting was held virtually and the upcoming American Association of Residential Mortgage Regulators (AARMR) Annual Conference will be held in person, but with reduced capacity. These frame the search for “a” normal as licensed mortgage companies balance licensing requirements and health risks while serving their borrowers.

The NMLS Ombudsman Meeting was held virtually on September 30th. Jim Payne, NMLS Ombudsman and Kansas Director of Examinations and Assistant Deputy Commissioner, started the meeting off by providing updates on actions in the and emails received and overview of the email topics and concerns. Most issues were otherwise referred to the NMLS Call Center team for resolution.

Bill Young of Conference of State Bank Supervisors (CSBS) updated the meeting on the progress made to date with NMLS modernization. Bill noted that this rewind of the modernization process is still too early to publish an estimated completion date and that many states will need to update their laws and regulations to adopt the standards for networked supervision. He also noted that an update will be presented at the AARMR Conference the week after Thanksgiving.

One Company Pilot

Kyle Thomas of CSBS updated on the State Examination System (SES) adoption and pilot of the one company, one exam that was ongoing. While 49 states are already using the SES for examinations and over 1,500 individual exams have taken place, only 14 states are using SES for managing their consumer complaint process. Both Bill and Kyle mentioned the need for state adoption of the systems and processes by states as part of the drive for uniformity. These are expected to be hot topics at the AARMR Conference.

Kobie Pruitt of the MBA presented the need to make remote work guidance permanent and update state temporary licensing flexibilities through 2022. His request was followed up by Bob Niemi, your OmBOBsman, who spoke on the need for increased branch licensing changes to allow for work from locations other than just a licensed branch. Mike Stidham of Rocket Mortgage discussed the impact of remote work by mortgage loan originators in meeting their customer’s needs at a time and place determined by the customer.

Keisha Whitehall Wolfe and Gus Avrakotos of Miles & Stockbridge discussed implementation of the money services business model law and increased disclosure and background reviews of passive investors and an expanded definition of control persons. While this is not currently part of the mortgage process, other areas of modernization have been piloted within the money services before being implemented in for mortgage licensing and supervision. This would include core licensing requirements, networked supervision and the SES.

Republished with permission. This article, "Regulatory Review, Reformatted" was published by National Mortgage Professional on December 1, 2021.