Last month involved several regulatory compliance updates and hot topics in the Mortgage industry. We’ve rounded up some key updates and how they will affect you and your financial institution going forward.
Modernized NMLS Licensing System on the Horizon: Stakeholders Invited to Comment
The money services businesses (MSB) industry will be the first industry to transition to a modernized NMLS, with implementation expected to occur in 2022. The new NMLS will be more automated, data-driven and user-friendly for applicants, licensees and regulators, according to the Conference of State Bank Supervisors (CSBS).
Establishing a standardized licensing approach based on uniform requirements across all state nonbank financial regulatory agencies is an essential step toward building a modernized NMLS and is one of CSBS’s Networked Supervision priorities for 2021.
Industry users of the Nationwide Multistate Licensing System (NMLS) are invited to submit comments on proposed requirements that will drive a standardized approach to the licensing process in the modernized NMLS.
The Conference of State Bank Supervisors is seeking input on the proposal until May 31, 2021.
Why Is This Important to Me and My Financial Institution?
The shift to a modernized NMLS in the future will streamline the licensing process for both state agencies and licensees. The CSBS is currently welcoming early input of stakeholders of NMLS.
Homes Are Spending Nearly 50 Percent Less Time On The Market
As a result of COVID-19 lockdowns, a housing boom took affect – signaled by record-low mortgage interest rates and residential home price increases.
A recent report from HouseCanary, Inc., a provider of residential real estate data and home valuations, revealed that the growing housing shortage is causing homes to spend fewer days on the market, compared to 2020. As a result, the housing market is heavily in favor of sellers now.
Why Is This Important to Me and My Financial Institution?
With homes selling faster than last year, mortgage demand is also increasing – causing upturns in business activities for MLOs. Be prepared to address surges in mortgage demand by addressing your personal productivity and refining your approach to successfully service the borrower demand. It’s important to pre-approve your borrowers in this market to give them a leg up in terms of seller consideration.
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