Orlando, FL – February 9, 2011 – (RealEstateRama) — Joseph A. Smith, Jr., North Carolina Commissioner of Banks, will address the Nationwide Mortgage Licensing System and Registry (NMLS) User Conference & Training today on the future of state mortgage regulation.
In his remarks, Smith will focus on a number of relevant issues related to the future of mortgage regulation. Specifically, he will discuss the NMLS as a model of cooperative federalism; the coordination between state and federal regulators called for by the recently-enacted Dodd-Frank Wall Street Reform and Consumer Protection Act; and significant issues facing the banking and mortgage industries, including the future of the GSEs and servicing issues, such as robo-signing and weaknesses in loss mitigation and foreclosure prevention efforts.
Noting continuing challenges for mortgage regulators and the mortgage industry, Smith will highlight the importance of efforts to examine servicing practices and the current structure of the servicing industry. Smith also will call upon attendees—regulators and members of the industry alike—to work together to improve mortgage supervision and enhance the performance of the mortgage industry. For example, Smith noted the introduction of mortgage call reports later this year will provide regulators and the industry with much-needed data and added transparency.
Smith is the current North Carolina Commissioner of Banks, an office he has held since June 2002. Commissioner Smith is a graduate of Davidson College and the University of Virginia Law School and is licensed to practice law in both New York and North Carolina. He is the Immediate Past Chairman of CSBS and a founding member of the Board of Managers of State Regulatory Registry LLC, a wholly owned subsidiary of CSBS which operates NMLS on behalf of state regulators.
Smith’s remarks are part of the NMLS User Conference & Training at the Hyatt Regency Grand Cyprus in Orlando, Florida. The conference brings together state and federal mortgage regulators, industry professionals, compliance companies, top law firms, and education providers to learn about the latest developments in mortgage supervision and to discuss pressing issues confronting the industry. There are over 400 attendees at the conference. A complete agenda of NMLS Conference events can be found here.
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The Conference of State Bank Supervisors (CSBS) is the nationwide organization for state bank regulation, representing the bank regulators of the 50 states, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands. State authorities supervise approximately 6,000 state?chartered financial institutions. Further, the majority of state banking departments also oversee mortgage providers and other financial service providers. CSBS is also responsible for improving the quality of state bank supervision by providing performance evaluation and accreditation programs for the banking departments, as well as supervisory education and training programs for state personnel.
The Nationwide Mortgage Licensing System & Registry is owned and operated by State Regulatory Registry LLC. CSBS in cooperation with the American Association of Residential Mortgage Regulators (AARMR) established the State Regulatory Registry LLC (SRR) on September 29, 2006. A limited-liability company, SRR is to develop and operate nationwide systems for state regulators in the financial services industry. Such systems are intended to enhance state’s ability to protect consumers; improve supervision and enforcement of licensed entities; and streamline licensing and other processes for state agencies and the industry through the use of modern technology and centralizing redundant state agency operations.
NMLS is a web-based system that allows state-licensed mortgage lenders, mortgage brokers, and loan officers to apply for, amend, update or renew a license online for all states using a single set of uniform applications. NMLS began operation on January 2, 2008. Further, passage of the SAFE Mortgage Licensing Act of 2008 requires all mortgage loan originators (MLOs) to be registered or state-licensed through NMLS. MLOs employed by insured depository institutions and subsidiaries are to be registered, and all other MLOs are to be licensed by state mortgage regulators. Federal depository regulators have indicated that MLOs could begin registering on NMLS in January 2011.