The Nationwide Multistate Licensing System (NMLS) is the system utilized for the licensing of financial services by various regulatory agencies across the United States.
Thanks to the NMLS, many financial services businesses can get their licenses without filling out dreaded lengthy paperwork that generally has to be done by hand and either mailed or taken into a government office. With over 50 state agencies utilizing the NMLS, consumer protection and efficiencies are increased by eliminating shipping sensitive documents, lost paperwork, and government bureaucracy — pretty great, right?
License types that submit to the NMLS include:
- Mortgage lender
- Mortgage bankers
- Mortgage brokers
- Mortgage servicers
- Mortgage loan originators
- Real estate brokers and salespersons
- Escrow agents
- Collection agencies
- Debt management service providers
- Pawnbrokers and precious metals dealers
- Money transmitters
All license details and requirements can be viewed on the NMLS website.
Out of all the business types submitting documentation through the Nationwide Multistate Licensing System, many of them are required to have a surety bond. Surety bonds are provided by surety companies (like Jet Insurance Company) and act as restitution to damaged parties should the licensee act in a fraudulent or negligent manner.
Licensees submitting surety bonds through the NMLS must grant the surety company access to upload the bond form. Any changes to the license bond can easily be made by the surety company within the NMLS, including name, address, or bond limit changes once given permission by the licensee. No matter what state is requiring a bond to be filed through the NMLS, the electronic surety bond process is the same. Here are links to steps licensees can take regarding an electronic surety bond:
Grant Access - In the Tasks tab, select “Surety Bonds” in the menu bar, click Authorized Surety Entities, then Add Surety, and Grant Authority.
Bond Execution - In the Home tab, select the hyperlink next to Surety Bonds and Riders, click the Review button next to the bond you want to review. See Sign a Bond or Bond Rider below.
Sign a Bond or Bond Rider - In the Filing tab, select the Surety Bonds link in the submenu, click Review next to the bond or rider you need to sign, enter your title in the Signatory Title box, check the attestation language box, and click the Sign button to finish.
Assign a Broker of Record Change - In the Tasks tab, click Surety Bonds in the menu bar, click Broker of Record Changes, click the Review button next to the appropriate broker, click Accept or Deny to proceed.
See Jet’s graphic below depicting the general surety bond filing process through the Nationwide Multistate Licensing System.