With mortgage rates so low now, you have probably seen and heard several ads for single family or mobile home mortgage lenders.
You might have also seen and heard their NMLS number. NMLS stands for Nationwide Multistate Licensing System.
Why should you care about this number when you look for a mobile home mortgage lender?
According to the NMLS Resource Center, “The NMLS Unique Identifier is the number permanently assigned by the Nationwide Mortgage Licensing System & Registry (NMLS) for each company, branch, and individual that maintains a single account on NMLS.”
In other words, just like general contractors have licenses, lawyers have to pass the bar, doctors are board certified and teachers must get their teaching credential, mortgage lenders need to have an NMLS number in order to offer mortgage loans.
NMLS was created in 2008 when the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) was passed. It is intended to weed out unscrupulous lenders. In the early 2000s, lenders were offering loans without verifying a borrower’s income or their ability to make mortgage payments. Many borrowers defaulted and the housing crisis of 2008 and hundreds of thousands of foreclosures ensued.
The SAFE Act requires loan officers to be licensed according to national standards. Now you can research and compare your lender’s background, credentials, and other professional information.
The following are some of the qualifications a lender must take to get a license and an NMLS number, according to Loan Officer License Information:
- Maintain a license in good standing
- Not have a felony conviction for the previous seven years
- Never have a felony conviction relating to a financial crime
- Provide a credit report to show personal financial responsibility
- Keep up with mandatory education classes annually
In one quick visit to the NMLS site you can determine if your mortgage lender is in good standing. Our mortgage broker, Laura Chatoff at mhbloan.com is licensed with a NMLS number. She’s ready to find the best mobile home mortgage rate for you. She can be reached at 408-745-1000.