State-licensed loan officers and mortgage brokers know they must pass criminal background checks, but beginning Monday, Nov. 1 they began facing yet another test: a state authorized check on their credit.
"Beginning [Monday, Nov. 1], all licensed residential mortgage loan originators participating in the Nationwide Mortgage Licensing System will be required to complete the credit authorization process, regardless of any prior state requirements," said the Conference of State Bank Supervisors.
CSBS noted that the SAFE Act passed by Congress mandates a credit check to aid regulators in making a determination of a LO's "financial responsibility." (SAFE stands for the Secure and Fair Enforcement for Mortgage Licensing Act of 2008.)
NMLS has partnered with TransUnion to provide the single-bureau credit report with a Vantage Score.
"The SAFE Act leaves it to the discretion of each state regulator to develop their own processes and standards for reviewing credit information and determining the financial responsibility of its licensees," CSBS said.
