Twenty-nine state agencies have indicated their intent to participate in the Residential Mortgage Licensing System by the end of 2009.
The System will be used by state residential mortgage regulators to accept and process national, uniform license applications and renewal forms that have been created by state regulators over the past two years. Licensees will be able to electronically manage a single record in the System to apply for, amend, renew, and surrender licenses in one or more regulators. The System will manage state licenses for mortgage companies, branches, and individuals. The System is scheduled to go operational in January 2008.
The Statement of Intent signed by the 29 state agencies clearly asserts the reasons for state participation:
• To improve the efficiency and effectiveness of state supervision of the U.S. mortgage market;
• To fight mortgage fraud and predatory lending that costs consumers and the mortgage industry hundreds of millions of dollars in losses each year;
• To increase accountability among mortgage industry professionals;
• To unify and streamline state license processes for mortgage lenders and mortgage brokers.
State agencies announcing their commitment to the System include Alabama, Arizona, Arkansas, Connecticut, District of Columbia, Georgia, Idaho, Indiana Department of Financial Institutions, Indiana Secretary of State, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, Washington and Wyoming.It is expected that the above state agencies will transition onto the System over the 2008 and 2009 time period as full functionality for the System’s release is completed. Additional state agencies have expressed interest in participating in the System, but are still determining a timeframe for their participation.
"We are proud to announce this initial phase of participating states who are taking a leadership role in creating a unified and modern system of state mortgage supervision", stated Neil Milner, CEO, CSBS. "By announcing their intent to participate, these state agencies will be heavily involved in the initial phase of development of the Residential Mortgage Licensing System."
"The importance of this initiative is underscored by the number of state agencies indicating their intent to come on the System during the initial phase of development," commented George Kinsel, President, AARMR. "These states are creating the critical mass necessary for state supervision of the mortgage industry to become more uniform, more efficient, and more effective."
Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.