Update on the Registration of Residential Mortgage Loan Originators

 

The federal agencies (NCUA, Comptroller of the Currency, Federal Reserve System, FDIC, Office of Thrift Supervision and Farm Credit Administration) have announced that the NMLS registration system for residential mortgage loan originators (MLOs) will be operational on January 31, 2011. The Federal Registration website,  http://mortgage.nationwidelicensingsystem.org/fedreg/Pages/default.aspx, provides valuable information for federally regulated lenders whose MLOs will have to be registered. The Federal Registration website contains step-by-step instructions (including training) for the registration of MLOs.

The fees for Federal Registration are as follows:

 Entity Initial
Set-up Fee
Annual
Processing Fee
MLO  Change
of Employment
Two-Factor
Subscription
Institution
(Form MU1R Filing)
$100 $100 n/a $55/user
Individual
(Form MU4R Filing) for 2011
$60 $0 $30 n/a
Individual
(Form MU4R Filing) for 2012 and subsequent years
$30 if registration occurs in January to June.
$60 if registration occurs in July to December.
$30($0 if registration occurred in July to December of same year.) $30 n/a

Once the NMLS system is operational, federally regulated lenders (including federal and state chartered credit unions) will have 180 days to register those employees who are MLOs.

After the initial 180 day registration period expires, MLOs will be prohibited from originating residential mortgage loans until they successfully complete the federal registration process. MLOs who originate 5 or fewer mortgage loans during the previous 12 months are not required to register with the NMLS.

 

The information contained in this website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient’s state.   The content of this Website contains general information and may not reflect current legal developments, verdicts, or settlements.  The Law Offices of Morton W. Baird II expressly disclaims all liability in respect to actions taken or not taken based on any or all the content of this Website.

 

Posted in Real Estate Law