Mortgage lender fined for failure to notify NMLS of address change.
7/22/2021 8:00
The commissioner of the Connecticut Department of Banking entered into a consent order with Geneva Financial LLC on July 7 after finding the mortgage lender failed to file a change of address for its branch office with the Nationwide Multistate Licensing System (NMLS) at least 30 calendar days in advance.
The consent order was based on an investigation by the department’s consumer credit division.
As a result of the investigation, the commissioner also alleged Geneva Financial “failed to provide a bond rider or endorsement, or addendum, as applicable, to the surety bond on file with the commissioner, in violation of Section 36a-490(b)(2) of the Connecticut General Statutes.”
Geneva Financial paid $500 as a civil penalty as part of the consent order.
While it applied to a mortgage lender, the consent order serves as a good reminder for licensees to ensure their applications are up to date and submitted on a timely basis.
For example, the Connecticut Department of Banking recently extended its remote work order for debt collection licensees as long as they maintain records identifying the dates of authorized remote office activity, the location of each remote office at which it conducts business and the names of all individuals authorized to conduct business at each remote office location, ACA International previously reported.
In California, licenses will be required for any person engaging in the business of debt collection in California to be licensed by the Department of Financial Protection and Innovation starting Jan. 1, 2022. Applications are due Dec. 31, 2021, and will be available online through the NMLS Sept. 1, ACA previously reported.
NMLS users will also see a modernized system next year.
Establishing a standardized licensing approach based on uniform requirements across all state nonbank financial regulatory agencies is an essential step toward building a modernized NMLS and is one of the Conference of State Bank Supervisor’s (CSBS) Networked Supervision priorities for 2021, ACA previously reported.
The new NMLS will be more automated, data-driven and user-friendly for applicants, licensees and regulators, according to CSBS.
Key components of the proposal include:
- A three-part licensing framework that distinguishes requirements as core, business-specific and license-specific, with the goal of creating uniform license requirements and reducing variations among state agencies as much as possible.
- A listing and description of each core requirement as it applies to companies and individual licensees.
- An overview of the identity verification process users will complete when creating an account in the new NMLS.
ACA members can find more information on licensing requirements in the ACA SearchPoint library using the licensing tag.
For more information on how the ACA licensing staff can assist with your licensing application completion needs, please contact us at [email protected] or call (952) 926-6547.