Some regulators are using the state-run National Mortgage Licensing System to ride herd over more than just the mortgage business.
According to the State Regulatory Registry, the Conference of State Banker Supervisors subsidiary that operates the NMLS, five state banking agencies have gone beyond the scope of the original NMLS to license and supervise non-depository financial services.
Massachusetts, Oklahoma, Rhode Island, Vermont and Washington now are managing license authorities covering a range of industries, including money transmitters, debt collectors and sales finance companies. Moreover, six more agencies plan to expand their use of the NMLS system this year, and nine more are expected to do the same next year.
“We are building upon the success NMLS has had in bringing greater consistency, transparency, and supervision to the oversight of the mortgage industry,” said David Cotney, Commissioner of Banks at the Massachusetts Division of Banks and Chairman of SRR.
“Now, with updates to the system, state regulators have the ability to not only enhance oversight of the mortgage industry, but a broad range of financial services industries that provide important access to credit to American families.”
