Pennsylvania to Join Nationwide Mortgage Licensing System

August 27 2008 - Secretary of Banking Steve Kaplan said today that Pennsylvania is among the 20 states that will join the Nationwide Mortgage Licensing System this year.

The national system is an online registry of mortgage companies and professionals licensed in participating states. The system establishes a single record for each licensee that can be viewed and updated by regulators. Licensees can also use the system to apply for and maintain their licenses in multiple states.

“The Nationwide Mortgage License System will bring a new level of accountability to the mortgage industry,” said Kaplan. “Bad actors will no longer have the ability to move undetected from company to company and from state to state.”

The Banking Department is sending letters to mortgage companies with detailed instructions on how to register on the national system. Licensees are strongly encouraged to immediately open an account on the system and begin the transition process. Those that fail to submit their information by the end of the year will lose the authority to conduct mortgage business.

The Nationwide Mortgage License System was launched in January by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.

Fourteen state agencies are currently using the system. A total of 42 state agencies have indicated their intention to join the system.

A copy of the Banking Department letter to mortgage companies is available online at: http://www.banking.state.pa.us.