ComplianceJuly 07, 2025

Navigating NMLS and mortgage lending licensing

In accordance with the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act), each state must license mortgage loan originators in line with national standards.

In addition, all state-licensed and federally registered mortgage loan originators must be registered with the National Mortgage Licensing System (NLMS).

In this article, we explore frequently asked questions about NMLS and mortgage lending licensing, including the process, what’s required, and how to submit your application.

What is NMLS?

NMLS or the National Mortgage Licensing System and Registry is a centralized database used by more than 60 regulatory government agencies to administer initial license applications and manage ongoing compliance requirements in participating states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, and Guam. Consumers can also use the database to verify that a financial-services company or professional is authorized to conduct business in the state. Searches will also reveal any regulatory actions against the company or individual that have been posted to NMLS.

NMLS is also a web-based platform used by companies and individuals seeking to apply for, amend, renew, and surrender licenses in these jurisdictions. This covers mortgage lenders, money transmitters, and money services, including check cashing and currency exchange businesses. Furthermore, NMLS is the system of record for all federal registrations required of federally regulated mortgage loan originators.

What is an NMLS license?

NMLS as a system does not grant or deny license authority. Rather, it makes the process of applying for a mortgage license in multiple states easier since it provides a common tool and process for all participating states. Using the NMLS portal, lenders and originators can register for exams, make payments, report authorized agents, renew licenses, and more.

What is an NMLS number?

The NMLS unique identifier is a number permanently assigned by the NMLS for each company, branch, and individual that maintains an account in the system. An NMLS ID cannot be changed once it has been assigned.

This identifier was mandated by the SAFE Act and most state mortgage licensing laws require mortgage loan originators to include it on various documents or in advertisements, including business cards, websites, solicitations, and loan application forms.

Note: The NMLS unique identifier is automatically assigned to a company or individual when they create an account in NMLS. However, the identifier is not valid until a state license or federal registration has been issued.

What are the requirements for a mortgage lending license?

The SAFE Act requires that state-licensed mortgage loan lenders and originators pass a written qualified test and undertake pre-licensure and continuing education courses. The Act also requires them to submit fingerprints to the NMLS for an FBI background check and authorize an independent credit report.

States may have their own supplemental requirements to the standard NMLS application. The system provides a checklist by state and license type. For example, Montana Mortgage Broker Company applicants are required to obtain a surety bond of up to $100,000. Pennsylvania Money Transmitter Company applicants must submit fingerprint cards for a Criminal Background Check for each control person. And a Massachusetts collection agency license applicant must submit their application online through NMLS and mail various supporting documents to the Division of Banks.

Note: While the SAFE Act requires NMLS to support testing, education, and background checks, it is the state licensing agencies using the NMLS platform that ultimately determine whether a state-licensed mortgage loan originator meets all federal and state requirements, including passing the SAFE Mortgage Loan Originator Test, completing pre-licensure education, and undergoing background checks.

Easily manage complex requirements

There are over 75,000 federal, state, and local jurisdictions.  As their compliance requirements become more complex, we’re the partner that can help you manage them all.

How do you obtain a mortgage license through NMLS?

To obtain a mortgage license through NMLS, first review your state requirements by visiting the NMLS State Licensing Requirements page for your state. The state pages outline the documentation you may need to upload to the NMLS platform, which will then be transmitted to the state agency.

Prior to applying for state licensing, mortgage loan originators and certain individuals must pass the National SAFE MLO test, complete pre-licensure training, and authorize both a criminal background check and credit check, among other requirements. NMLS provides information on the specifics of each of these requirements.

Be sure to coordinate your application with your employer. If your company is registered with NMLS or registered in a state via the system, either you or your company must complete Individual Form (MU4) and pay associated fees. If your company is completing your MU4 form, wait for their direction before proceeding.

When creating an account in NMLS, ensure that all information is accurate, complete, and reflects all legal documentation. Inaccuracies can result in one or more duplicate accounts (and can be costly to fix).

Note: If you have an existing NMLS account because you are or were state licensed or federally registered, you must grant your employer access to the account. (Your login information and NMLS identification number won’t change.)

Once your account is created, review your requirements and fees. NMLS has a checklist compiler that gathers license or registration requirements fees in a downloadable file. You will be able submit your application and attachments online.

Learn more

CT Corporation can guide businesses through the process of using NMLS. We can file all licenses and registrations required, minimizing time-consuming and costly delays. If you are already licensed, we can file renewals and manage ongoing compliance.

Contact a CT Corporation Service Representative to learn more about how CT Corporation can help you manage your mortgage lending licensing needs.

The CT Corporation staff is comprised of experts offering global, regional, and local expertise on registered agent, incorporation, and legal entity compliance.

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