Next Steps Activity

How to Use This Document

Take notes on the course and discuss your agency’s specific licensing policies with your supervisor.

Since the information provided in the Mortgage Licensing School is designed to teach you about general best practices in mortgage licensing and does not account for your agency’s specific practices, you must discuss with your supervisor to determine how your agency applies the concepts discussed in each course.

In order to help guide your discussion with your supervisor and provide a place for you to record what you have learned from the course, this Next Steps Activity also provides a place for you to take general notes on the best practices described in each course.

Instructions

1

Next Steps Activity

  • Use the Table of Contents to navigate to the section of the document associated with the course you are currently taking.
  • As you are taking the course, record any general notes you may have in the “General Notes (Optional)” section.
  • Throughout the course, there will be Next Steps that correspond to a section of this document that you must complete.
  • Record your notes on the best practices described for each Next Steps topic and use these when discussing the Next Step with your supervisor.
  • Record your notes from your discussion with your supervisor. Be sure to provide accurate, well-researched responses.
  • Save a copy of the document to your computer.
  • When you have completed all courses in the learning plan and completed the Next Steps activity, submit it, go to the final “Next Steps” course in the Learning Plan in the Learning Management System and submit your activity.
  • NOTE: Use the icons in the Learning Plan Legend below to determine the sections of the document that need to be completed for the Learning Plan in which you are enrolled.

1

Next Steps Activity

Additional Information

  • For information on how to complete and submit the Next Steps Activity, refer to the Next Steps Quick Guide.
  • Questions? Send an email to .

TABLE OF CONTENTS

How to Use This Document

History of Licensing

NMLS, Licensing, and the State Agency

NMLS Account Management and System Navigation for Organization Users

NMLS Resource Center and Support

SAFE Act Requirements

Work List Management & Assignment

MLO License Applications – Industry Perspective

Record Access, Relationships, and Sponsorship

License Item Management

License Statuses

Reviewing MLO License Applications

Reviewing a Criminal Background Check

Reviewing a Credit Report

Reviewing Individual Amendments

Testing and Education Investigations

Adverse and Final License Statuses

Using NMLS Reports

NMLS Consumer Access

License Surrender

NMLS Account Management and System Navigation for Account Administrators

Company License Applications – Industry Perspective

Reviewing Company License Applications

Compliance Management Oversight Responsibilities

Business Plans

Audits

Dedicated Resources

Risk Management Programs

Compliance Management Systems

Business Continuity and Disaster Recovery

Branch License Applications – Industry Perspective

Reviewing Branch License Applications

Reviewing Company/Branch Amendments

Advance Change Notice

Regulatory Actions

Agency Fee Invoicing

Company/Branch Renewal Process

Reviewing Company/Branch Renewal Requests

MLO Renewal Process

Reviewing MLO Renewal Requests

Completing the Mortgage Call Report – Industry Perspective

Reviewing the MCR – Standard RMLA

Reviewing the MCR and Financial Statement – Standard Financial Condition and Financial Statement

Reviewing the MCR – Expanded RMLA

Reviewing the MCR and Financial Statement – Expanded Financial Condition and Financial Statement

History of Licensing

Part Two: Pre-SAFE Act Licensing

Ask your supervisor if your agency was engaged in mortgage licensing prior to NMLS, and to what degree.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

General Notes (Optional)

[Enter your general notes from the course here.]

Return to Table of Contents

NMLS, Licensing, and the State Agency

Part Four: System Prioritization and Development Process

Speak to your supervisor about which conference calls and working groups you should be involved in and why.Some examples include: SRR Lawyers Committee, Mortgage Call Report Working Group, Regulator Development Working Group (RDWG), Data Download Working Group.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

General Notes (Optional)

[Enter your general notes from the course here.]

Return to Table of Contents

NMLS Account Management and System Navigation for Organization Users

Part One: Introduction

Speak to your supervisor to determine who your Account Administrators are.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Speak to your supervisor about the roles you will be or have been assigned. For those roles you do not have, speak with your supervisor to understand who has additional roles and what functions they support in NMLS (i.e., Once I complete a review do I hand off to someone else to review, change the status, etc.). Also ask which notifications you may have been assigned to receive, and which Review Items you may be assigned.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

General Notes (Optional)

[Enter your general notes from the course here.]

Return to Table of Contents

NMLS Resource Center and Support

Part One: Regulator Resource Center

Speak to your supervisor to ensure you have access to the Regulator Resource Center. Ask which areas of the Resource Center your agency commonly uses. If you do not have access to the Resource Center, find out why.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

General Notes (Optional)

[Enter your general notes from the course here.]

Return to Table of Contents

SAFE Act Requirements

Part Two: Education

Speak to your supervisor about your agency's state-specific PE requirements.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Speak to your supervisor about your agency's state-specific CE requirements.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Part Three: Testing

Speak to you supervisor to determine if your agency has adopted the Uniform State Test (UST). If not, why?

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Part Five: Criminal Background Check

Speak to your supervisor about your agency's criminal standards to determine if there are additional requirements or if requirements are more stringent than the SAFE Act standards.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Speak to your supervisor to determine if your agency requires state-specific background check in addition to a federal CBC. If you do require a state-specific background check, why?

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Part Six: Financial Responsibility & Fitness

Speak to your supervisor to determine how your agency determines financial fitness. What are the credit report review standards used if any?

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Part Seven: Mortgage Call Report

Speak to your supervisor to determine which of your agency’s license types are NOT required to complete the Mortgage Call Report. If there are any, ask why they are exempt.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

General Notes (Optional)

[Enter your general notes from the course here.]

Return to Table of Contents

Work List Management & Assignment

Part Two: Agency Work List & Assignment vs My Work List vs Review Item Assignment

Have a discussion with your supervisor on how your agency uses the work lists. Specifically:

  • Does your agency use the wok list assignment feature in NMLS?
  • Are you expected to assign work to yourself or other members of the agency?
  • Which work list are you expected to work off of on a regular basis?
  • When work is complete, what is typically done (i.e., mark item as complete, archive, do not archive?)

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

General Notes (Optional)

[Enter your general notes from the course here.]

Return to Table of Contents

MLO License Applications – Industry Perspective

General Notes (Optional)

[Enter your general notes from the course here.]

Return to Table of Contents

Record Access, Relationships, and Sponsorship

Part Two: Required Information

Speak to your supervisor to determine your agency's sponsorship requirement for individual licensees.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Part Five: Regulator Perspective

Speak to your supervisor to determine if your agency allows multiple sponsorships per license. Why or why not?

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Speak to your supervisor about your agency's process when reviewing and making a decision on a sponsorship request.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Speak to your supervisor about whether your agency allows for the use of the "Approved - Inactive" status for individual applicants without an active sponsor. If not, why?

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

General Notes (Optional)

[Enter your general notes from the course here.]

Return to Table of Contents

License Item Management

Part Two: System-set vs. Regulator-set License Items

Speak to your supervisor about the licensing deficiencies that may result in the creation of license items.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Part Three: Adding License Items

Speak to your supervisor to determine if your agency enters notes and uses the Regulator Log to track review process. If not, why?

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Speak to your supervisor about whether your agency has standard license item language, and whether it includes contact information for the licensee should they have questions. If not, what is the expectation for language used?

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Speak to your supervisor about how your agency manages MU2/MU4 credit and CBC communication and what are your agencies best practices for communication of Credit Report and CBC issues outside of the system.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Speak to your supervisor about your agency’s requirements for the handling of confidential information received from the applicant.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Speak to your supervisor about your agency's usage of the "Due Date" field when adding license items to track in the Reminder List. If your agency does use due dates, how do you determine the timeframe required for response? For example, do you use a different due date depending on the severity of the license item? If you don’t use due dates, why not?

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Part Four: Potential Impacts of Adding a License Item

Speak to your supervisor about your agency's work process for adding license items.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Part Five: Managing and Clearing License Items

Speak to your supervisor about your agency's method to follow-up and clear license items.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

General Notes (Optional)

[Enter your general notes from the course here.]

Return to Table of Contents

License Statuses

Part Three: Updating License Statuses

Speak to your supervisor about when your agency updates license status:

As part of the application review process

Ad hoc

Using the Bulk License Status Update functionality

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Part Four: Internal & External Notes, Dates

Speak to your supervisor about your agency's usage of Internal and External Notes when updating license statuses.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Ask your Supervisor when you should make an external note “private.”

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Speak to your supervisor to identify whether your agency has any licenses that are currently transitioning to NMLS and how that process works.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Part Five: Adverse Statuses

Speak to your supervisor to determine your agency's process when dealing with revocations.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Part Nine: Conclusion

Speak to your supervisor to determine which license statuses your agency uses and when certain statuses are used (refer to the License Status Definitions document).

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

General Notes (Optional)

[Enter your general notes from the course here.]

Return to Table of Contents

Reviewing MLO License Applications

Part Two: MLO Application Review Process

Ask your supervisor to give you a high-level overview of your agency’s work process for reviewing a new application in NMLS.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Part Three: Submission of the Individual Form (MU4)

Discuss with your Supervisor to determine if any parts of the Individual Form are not required by your agency.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Discuss Sponsorship Status and how they are used with your supervisor.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

If a regulatory action is attached to the applicant’s record, how do I manage this during the review process?

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Speak with your supervisor about the “View Federal Information” user role and if this is something you need to have. Keep in mind that users assigned this role are subject to NMLS Two-Factor Authentication.

[Enter your notes on best practices from the course here, if applicable.]
[REQUIRED: Enter your notes from your discussion with your supervisor here.]

Discuss your agency’s policies for incorrect license type applications with your Supervisor.