A number of professionals in the financial field from across the U.S. undergo their licensing procedures through the Nationwide Multistate Licensing System & Registry. If you are a mortgage broker or lender, collection agency, or money transmitter, among other specialists, you need to renew your license through the system by December 31 of each year.
As the end of 2017 is approaching, it’s a good idea to get started with the NMLS license renewal process. Being punctual is essential, as without an active license, you can lose your right to operate. While the official deadline is December 31, you may need to meet earlier state deadlines. You also may need to renew your surety bond, so make sure you obtain a continuation certificate or a nw bond in time.
Here is what you need to know about the 2018 renewal through the NMLS platform.
The 2018 NMLS license renewal in a nutshell
The 2018 renewal started on November 1, 2017. Businesses and individuals that need to renew their license through the NMLS system can already do it.
Some of the things you can prepare in advance is to check whether the computer you will use for the renewal has an updated browser. The NMLS has specific requirements about browser versions, so make sure yours will do the job. Once you confirm there are no technical difficulties, log in to your NMLS account to ensure it is active and accessible. If you need to update your record in the system, you can introduce the changes at this point.
Regarding the state licensing requirements you need to meet, ensure that there are no deficiencies in your renewal application package. You can review the NMLS renewal checklist, where you can find links to each state authority’s specific criteria. You can also watch a NMLS four-minute video on the renewal process. Consult the relevant NMLS license renewal fees as well, so that you are prepared to cover them.
Once you are sure that you can meet all requirements, make a renewal request through the NMLS. After that, send to your state licensing body any paperwork that it needs to review which is not submitted via the system. Most states have such additional requirements, except for California, Indiana, Nevada, Oklahoma (DOCC), Rhode Island, South Carolina, Texas (DOB and SML), Vermont, and Virginia. Make sure you are aware of them, as it is solely your responsibility to fulfill all renewal criteria.
Don’t forget to renew your surety bond
Many financial professionals have to provide a surety bond, such as a mortgage broker bond, a collection agency bond or a money transmitter bond., to obtain their state license. As of 2016, a number of licensing bodies require licensees to submit their bonds online via the NMLS. The electronic surety bond (ESB) will be needed by some licensees in Alaska, Montana, North Dakota, South Dakota, Minnesota, Illinois, Mississippi, Georgia, North Carolina, Rhode Island, and Indiana. You can consult whether your state authority requires your trade to use the ESB in the State Adoption of NMLS ESB chart.
In order to renew the required bonding, you will need to either obtain a continuation certificate or provide a new bond. The exact requirements vary by state and will also depend on your surety provider.
With every bond renewal, you can also work on reducing your bond cost. As your bond premium depends on your personal and business finances, you can try to improve them or make any outstanding payments before you apply for renewal. In this way, you can pay less for your next bonding.
Do you have any questions about renewing your license and bond? Don’t hesitate to contact us at 866.450.3412.