Written By: Staff Writers of MortgageCurrentcy.com. [Everyone can read entire article.]
One of the provisions of the National Mortgage Licensing System is that loan officers must be “financially responsible”. At the time, everyone wondered what the heck that meant?
Well, you knew it was going to happen. The NMLS has announced that beginning on November 1st, 2010, all licensed loan officers (not registered) must authorize them to pull a credit report on YOU — regardless of what your state’s requirements are — and even if your credit was previously reviewed.
If you will be applying for a license in the future, you must authorize the credit report pull at the time you apply.
Here’s how it will work:
You’ll have to log into your NMLS account.
You will be asked some questions to prove your identity. These are personal questions so your company will NOT be able to answer them for you. Questions that might be asked would be previous addresses, balances on loans, current or previous phone numbers — things that only you would know.
The fee is $15, and is non-refundable.
The report will be considered a “soft pull”; it will be thru TransUnion, using Vantage Score® and will be a singe report. (Hint, pull your own TransUnion report and see exactly what you will need to do to fix any errors.)
The NMLS will NOT be pulling the credit report. They are serving as your state’s clearinghouse and it will be your state who will access the NLMS database and randomly pull a credit report.
Licensees will not have the ability to view the credit report that is generated.
There are a handful of states whose rules state that they will be pulling a report by the end of 2010. The rest of the states will be pulling between January and March of 2011.
And, you won’t know when your credit will be checked — it could be a year from now.
It also means that you are giving them the authority to pull a credit report for years to come.
More info can be found in the November 10th issue of MortgageCurrentcy.com and at the NMLS website.
In addition, the “state agency checklist” was updated on October 15, 2010.
Copyright - 2010 - LoanOfficerMagazine.com
