NEW LAWS AND REGULATIONS AFFECTING THE MORTAGE INDUSTRY
Bank Secrecy Act (Effective Aug. 13, 2012)
Does your company employ residential mortgage lenders or mortgage loan originators? If so, on Aug. 13 your company will be required to have a written Anti-Money Laundering Program (AML) in place. For general information on the Bank Secrecy Act visit the Office of the Commissioner of Financial Regulations at the Maryland Department of Labor, Licensing and Regulation (DLLR) website. For questions about the law and compliance for mortgage companies and brokers visit the United States Department of Treasury Financial Crimes Enforcement Network.
New Maryland Law (Effective July 1, 2012)
Did you know that recent state legislation has changed the application and renewal process for both mortgage lender/broker and loan originator licensees? License and renewal periods have changed for lenders/brokers and loan originators and license application fees are now non-refundable. The new law also changes Nationwide Mortgage Licensing System and Registry (NMLSR) reporting requirements for mortgage lenders/brokers. To view a summary of all legislation which passed this year pertaining to the mortgage industry, read the Office of the Commissioner's 2012 MD Legislative Highlights.
Summary of New Law
Broker Licensing – Length of License and Refund of Licensing Fee
• New law provides that for licenses issued prior to Nov. 1, the license will expire at the end of the year of issue. Licenses issued on or after Nov. 1, will now be valid until Dec. 31 of the following year of issue. Licensing fees paid to Commissioner are NO LONGER REFUNDABLE.
Broker Licensing – Renewal
• Current law provides that brokers must renew at least 30 days before expiration date of license. New law extends period to 60 days.
Broker Call Reporting to NMLSR
• Current law requires brokers submit to NMLSR a "report" once each calendar year [as required by NMLSR]. New law requires a "CALL" report must be submitted quarterly to NMLSR.
Originators (Non-Affiliated) – Change in Employment/Inactive Status
• In the case of new employment, new law requires the licensee amend the sponsorship information on the NMLSR by submitting the amendment in the form required by the Commissioner to indicate new employer info. The individual is no longer required to return the license, or an affidavit stating that the license has been lost or destroyed, to the commissioner, though the restriction against practicing while registered as "Inactive" still remains.
Application and Renewal Process
To apply for, or renew your Mortgage Lender/Broker license through the Nationwide Mortgage Licensing System (NMLS) use the links below or visit DLLR's website at the Office of the Commissioner of Financial Regulation.
• New Applicants - ALL new license applicants MUST initiate applications through the NMLS. Proceed to NMLS HERE. Please note new license requests must be submitted through the NMLS, but supporting documentation must be sent to the Maryland Office of the Commissioner of Financial Regulation.
• Renewing Licensees - You must renew your license on the NMLS during the renewal period – Nov. 1 through Dec. 31. Proceed to NMLS HERE. Please note renewal requests must be submitted through the NMLS, but supporting documentation must be sent to the Maryland Office of the Commissioner of Financial Regulation.
For additional information on Maryland licensing requirements, applications, amendments and more visit the NMLS Resource Center.
Light St., Baltimore, MD 21230
TEL: (410) 752-6262 | FAX: (410) 752-8295