Licensees and applicants who use NMLS should become familiar with the NMLS Policy Guidebook as it is a helpful aid in understanding NMLS’s policies. In April, a number of changes were made to the Guidebook. In particular, a section on “Non-Disclosable Events and Regulatory Actions” was added. This section states that, where a regulatory action is posted in NMLS with the privacy level of “All Regulators” and is also noted as a non-disclosable action, other state regulators are prohibited from requiring the action to be disclosed elsewhere in NMLS. The prohibition also encompasses disclosure in exam findings or reports, or otherwise requiring that the regulatory action be made available to non-regulators through NMLS. The Guidebook further clarifies that the “non-disclosable” notation may occur in the “Description of Action” field, “Regulator Notes” field, “External Notes” field, or otherwise contained in the supporting documentation included with the regulatory action.
Other changes include the following:
- The Temporary Authority to Operate Consumer Access section was updated to state: “Consumer Access will show that an MLO is ‘Authorized to Represent’ once sponsorship has been requested or accepted.” (See p. 108).
- The definition of “Temporary Authority to Operate” was added to the Glossary: “Temporary Authority to act as a loan originator permits: 1) qualified MLOs who are changing employment from a depository institution to a state-licensed mortgage company, and 2) qualified state-licensed MLOs seeking licensure in another state, to originate loans while completing any state-specific requirements for licensure such as education or testing.” (See p. 142).
- The following Temporary Authority to Operate license statuses were added to the existing “License Status Definition” list: Pending-Deficient (Temporary Authority Eligible), Pending-Deficient (Temporary Authority), Pending Review (Temporary Authority), and Pre-Approved (Temporary Authority). (See pp. 147-148).