WASHINGTON — Banking regulators in some states have expanded the use of a mortgage licensing system to include non-banks, the Conference of State Bank Supervisors said Monday.
Regulators in Massachusetts, Oklahoma, Rhode Island, Vermont and Washington are now managing licenses for a range of nonbank companies, including money transmitters, debt collectors and sales finance companies, using the National Mortgage Licensing System.
Six other states plan to expand the system to include non-banks this year — Louisiana, Maryland, New Hampshire, Tennessee, Idaho and the District of Columbia — and nine others are expected to do so in 2013, CSBS said.
"We are building upon the success NMLS has had in bringing greater consistency, transparency and supervision to the oversight of the mortgage industry," David Cotney, the Massachusetts commissioner of banks, said in a press release. "Now, with updates to the system, state regulators have the ability to not only enhance oversight of the mortgage industry, but a broad range of financial services industries that provide important access to credit to American families."