NMLS Credit Score Requirements

NMLS Credit Score

NMLS stands for Nationwide Multistate Licensing System/Nationwide Mortgage Licensing System. NMLS is a system of record for non-depository, financial services licensing or registration in participating state agencies, including the District of Columbia and U.S. Territories of Puerto Rico, the U.S. Virgin Islands, and Guam. So NMLS is the official system for companies and individuals, who want to apply, amend, renew, and surrender license authorities which are managed through NMLS. Usually, NMLS grant or deny license authority by 64 states or territorial governmental agencies.

There is a standard or minimum credit score set by NMLS. Each state regulator sets the credit score requirement for NMLS. They have their own processes and standards for reviewing credit information. It helps them to review the credit information and determine the financial responsibility of their licensees.

Issues Checked by the NMLS Policy Committee

There are quite a few issues that are checked by the NMLS policy committee. They are:

1. Regulatory policies that govern NMLS

2. NMLS development decisions

3. Prioritization of NMLS functionality

4. NMLS Public Comments

5. Suppression requests concerning NMLS Consumer Access

6. B2B Subscriptions 

7. Modernization of the System (NMLS), including the State Examination System (SES) application  

NMLS Processing Fees For State Licensure

For state licensure, there are three types of fees: initial setup fee, annual processing fee, and MLO change of sponsorship fee. You have to pay the initial setup fee every time a company, branch, or mortgage loan originator uses the NMLS to apply for a new license. The annual processing fee will incur each year during the annual renewal period when a company, branch, or mortgage loan originator submits a renewal request. This fee will incur every time a company requests to sponsor a mortgage loan originator’s license.

EntityInitial Set-up FeeAnnual Processing FeeMLO  Change Of Sponsorship
Company (Form MU1 Filing)$100$100$30
Branch (Form MU3 Filing)$20$20N/A
Individual (Form MU4 Filing)$30$30N/A

NMLS Processing Fees For Federal Registration     

There are four types of NMLS processing fees available for federal registration. They are:

1. Initial Setup Fee

2. Annual Processing Fee

3. MLO Change of Employment Fee

4. Two-Factor Subscription Fee       

EntityInitial Set-Up FeeAnnual Processing FeeMLO  Change Of EmploymentTwo-Factor Subscription
Institution (Form MU1R Filing)$100$100N/A$55/user
Individual (Form MU4R Filing) for 2011$60$0$30N/A
Individual (Form MU4R Filing) for 2012 and subsequent years$30 if registration occurs between January and June.$60 if registration occurs between July and December.$30($0 if registration occurred between July and December of the same year.)$30N/A

NMLS Approved Educational Provider Fees

1. Provider Application Fee – $400

2. Provider Renewal Fee – $400

3. Course Approval Fee – $300 plus $20 per credit hour

4. Course Renewal Fee – $200 plus $20 per credit hour

5. Credit Banking Fee – $1.50 per credit hour banked

List Of License Provided By NMLS

There are many types of licenses provided by the NMLS. They are:

1. Consumer Loan License

2. Deferred Deposit Lender License

3. Escrow Business License

4. Independent Contractor Entity License

5. Mortgage Broker License

6. Mortgage Lender License

7. Mortgage Servicer License

8. Sales Finance Company License

9. Consumer Loan Branch License

10. Deferred Deposit Lender Branch License

11. Independent Contractor Entity Branch License

12. Mortgage Broker Branch License

13. Mortgage Lender Branch License

14. Mortgage Servicer Branch License

15. Sales Finance Branch License

16. Mortgage Loan Originator License

17. Designated Broker Registration

FAQs About NMLS Credit Score Requirements

1. Am I Required To Authorize A Credit Report Through NMLS?

Yes, you are required to authorize a credit report through NMLS. You have to complete the credit report through NMLS to satisfy the state-specific requirements of the state. However, if you are a federally registered MLOs then you don’t have to authorize a credit report.

2. Can I Obtain A Copy Of My Credit Report From NMLS?

The state regulators are not permitted to provide credit reports so you can’t obtain a copy of your credit report from NMLS. You have to depend on 3rd part service providers to get your credit report.

3. How Long Is My Credit Report Good For?

Usually, a credit report remains good for up to 30 days, and between these days you can use the same credit report to satisfy the credit report requirement for both existing licensees and any new licenses.

4. When The NMLS Pulls My Credit, Will It Lower My Credit Score?  

No, your credit score won’t be affected by the NMLS inquiry. This is because NMLS checks the credit score through a “soft pull” process and it has no effect on the applicant’s credit score.

5. What Type Of Credit Report Is Obtained Through NMLS?

NMLS provides a Single Bureau TransUnion Credit Report with the Vantage Score.

Last Updated on May 29, 2021 by Musa D

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