At least one-half of all states in the US are now connected to the Nationwide Mortgage Licensing System (NMLS). To become licensed to do business in any state that participates in NMLS, loan originators must now register with NMLS and follow the specific requirements of the state(s) they to do business in.

Some states have very substantial requirements for licensees. Massachusetts, for example, requires that your reverse mortgage loan originator must pass the S.A.F.E. Act training and testing component as well as undergo a CORI criminal records check, credit check and fingerprinting. Other states might be more lenient with respect to requirements. But everyone in these states must now at least register with NMLS.

Reverse Mortgage Professional Experience

It’s easy to check the qualifications/background of your reverse mortgage loan officer. Simply go to NMLS Consumer Access (<- here) and enter the loan officer’s NMLS registration number. You will be asked to confirm understanding of use of the system and you will be able to see the individual’s record in the system. The past 10-year job history plus info for each state where the loan originator is licensed will be reported. Click on “view employment details” to see how much experience your originator has.  Be certain to click on “view details” in each record to see if the person you are working with is currently licensed in your state.  You could be looking at a record where the loan originator has surrendered or failed to renew a license. Don’t assume the license is current just because you see the state listed.

Even If you don’t know the loan originator’s NMLS number, you are able to search the database by originator name. This is a little more tricky as the system may report the name in a slightly different format than the person customarily uses – Bill Smith, for example, might be listed as William F. Smith in the NMLS database.  You might need to try a few variations on the name.

Another simple search technique is to enter the zip code of the loan originator’s office represented on his/her business card. You should see the appropriate record along with all other lenders in that same zip code.

Caution Searching For Reverse Mortgage Data

Again…be very certain to drill down in each state shown in the loan officer’s record to make sure your reverse mortgage loan originator is currently licensed and “approved to do business” in that state.  Finally, note that reverse mortgage loan originators working for FDIC banks are completely exempt from state licensing. There is, of course, a big difference between licensing and merely registering.  You won’t find any background information on these originators and they may not have been checked for criminal background or credit. You have no way to know who these people are or what their professional experience is. While they must register with NMLS, the information is limited at best.

Author – Robert H. Irving, CSA®
Senior Reverse Mortgage Consultant

>>> Subscribe to Reverse Mortgage Information – Click Here <<<

>>> Free Referral to Consultant In Your Area – Click Here <<<