The Nationwide Mortgage Licensing System and Registry
(NMLS) has released information on licensed entities as of the first quarter of
2011(March 31) and a limited update on licensees at the end of the second
quarter (June 30.) The Nationwide
Mortgage Licensing System (NMLS) is the legal system of record for licensing in
all participating states, the District of Columbia and U.S. Territories. This appears to be the first set of quarterly
reports issued by the system which is in its fourth year of operation.
At the end of the first quarter there were 14,980 companies
licensed by the system holding 28,415 licenses and 15,957 licensed branches
with 24,021 branches. A total of 182,880
licenses were held by 100,008 individuals or mortgage loan officers (MLOs). By the end of the second quarter these
numbers had all increased with 16,153 companies holding 30,945 licenses, 17,387
branches holding 267,211 licenses, and 106,881 individuals with 201,469
licenses. Multiple licenses are held
where states require separate licenses for DBAs or for different authorities
such as lender and broker.
The most prevalent business activities reported (Q1) by licensees were first mortgage (89 percent) and second mortgage (74 percent) loan brokering
followed by home equity loans (47 percent), VA loans (35 percent) and FHA loan
correspondent (30 percent although the figures do not reflect recent FHA
changes in this category). Significant
numbers of licensees reported they were engaged in reverse mortgage loans (23
percent) first mortgage lending (22 percent) and non-mortgage related
businesses (22 percent.)
Very few mortgage companies or individual loan originators
operate across state lines. 12,503 of
the companies or 83 percent are licensed in only one jurisdiction and 79,751 as
are 80 percent of individuals. Ten
thousand individuals and 1,160 companies hold licenses in two jurisdictions and
a smattering are licensed in multiple states but only 175 companies and 850
individuals can be considered to have nationwide businesses by holding licenses
in more than 20 jurisdictions.
The vast majority of mortgage companies are single office
operations and most are one-person shops.
Eight-seven percent of mortgage companies report only one location and
only 59 have 50 or more branches. The
average number of branches per company is 1.06.
A total of 8,802 companies report none or one licensed loan originator
(there may be a company license but no originators required to have an
individual license.). Eighty-three
percent of companies have 1 to 5 originators with an average of 5.4 MLOs per
The majority of mortgage companies (62 percent) are
corporations following by limited liability corporations (19 percent) and sole
proprietors (16 percent).
During the first quarter of 2011 1,767 companies, 3,026
branches, and 22,341′ individuals applied for new licenses and 2,936 companies,
3,557 branches, and 28,507 individuals were
approved. Licenses were denied to
21 companies, 14 branches, and 270 individuals.
At the end of the quarter applications were pending for 5,280 companies,
3,896 branches, and 36,569 MLOs. A total
of 60 licenses were revoked, almost all in California and Georgia.
During the second quarter new applications were received
from 1,626 companies; 4,129 branches, and 16,673 MLOs and approved for 2,373;
3,103; and 20,062 respectively. A total
of 416 individual applications were denied along with 2 for companies and 4 for
branches. The backlog of pending
applications dropped to 3,818 companies, 3,587 branches, and 27,609
individuals. Overall, 47 licenses were
revoked by various jurisdictions during the second quarter.
See the full report here.