Professional Standards: Credit Report

Step 1: Am I required to authorize a credit report through NMLS?

Every state-licensed mortgage loan originator is required to complete the credit report authorization process through NMLS, even if credit information was previously received by their state regulator(s).

Individual control persons for state-licensed companies that complete an MU2 Form may be required by their state agency to authorize a credit report through NMLS.

Federally registered MLOs are not required to authorize a credit report.

Step 2: Speak with your company about who will pay

Companies have the ability to pay for the credit report on behalf of the MLO or control person. However, the company must initiate the credit report and send to the individual to attest and complete the Identity Verification process (IDV) process before making payment and submitting. If the indvidual begins the credit report request, he will have to pay for it.

Cost – The credit report fee is $15.00

Step 3: Request a credit report

If the company pays for the credit report, refer to Credit Report Submission Quick Guide (Company) for details and instructions.

If an MLO pays for the credit report, refer to Credit Report Submission Quick Guide (MLO) for details and instructions.

If you are a control person for a state-licensed company requesting a credit report, refer to MU2 Credit Report Submission Quick Guide (Individual) for details and instructions.

Step 4: Identity Verification Process (IDV)

The credit report functionality in NMLS will require the individual to complete an IDV in order to authorize the credit report. This process will involve answering a series of questions only the individual would know. It is necessary for all MLOs and control persons to log into NMLS and personally answer these questions. Companies are not able to answer these questions on behalf of their MLOs or control persons.

NOTE: If an individual has a security freeze on their TransUnion© credit profile and it is not lifted at the time of the credit report request, the MU4 (or MU2) Filing and payment made will be voided and the individual will need to resubmit the filing once the security freeze has been lifted. Access TransUnion’s Security Freeze Page for information on how to lift security freeze. Two options are provided, a global lift or a specific third party lift. You must select global lift.

Tips on preparing for IDV – Obtain a free annual credit report from www.annualcreditreport.com prior to beginning your credit report request in NMLS to allow you to resolve any issue on the credit report prior to providing to regulator(s). Access TransUnion’s Credit Dispute page for information on the dispute process.

Step 5: Regulator review

Each state regulator will independently review the credit information. There is no automated standard or minimum credit score that will be enforced inside NMLS. The SAFE Act leaves it to the discretion of each state regulator to develop their own processes and standards for reviewing credit information and determining the financial responsibility of their licensees.

Refund Policy

Payments collected through the NMLS are non-refundable.