The Nationwide Multistate Licensing System (or NMLS) began as a system of record-keeping for state-issued mortgage licenses, and has since expanded to include other financial-services-related business licensing. Today, for instance, mortgage broker bonds are filed directly with NMLS by the Surety’s processing team upon issuance, making the process quicker and paperless. NMLS can be used to edit, renew and terminate licenses as well as bonds — provided the licensing state participates.
NMLS doesn’t change the underwriting, or rate of surety bonds. Producers still place these license bonds through a surety company, and upon approval and issuance order, the principal / client will contact NMLS to “authorize” the Surety to electronically attach the bond to their license. This is usually quicker and easier than a trip to a government office to deliver the bond. No paper bond is needed. Cancellations, endorsements, and other changes can be done electronically as well. In the growing digital age, it’s important for producers and principals to be comfortable with systems like NMLS to guide themselves through this new landscape, as more states adopt and create systems like NMLS.
Traditionally, Surety as an industry operates on paper, with wet ink, and impressed seals. Integrity Surety is here to leverage our expertise and experience to help guide our clients through this new age of digital bond filing.
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