The Massachusetts Division of Banks has announced plans to move licensing registration for most non-depository financial services onto the Nationwide Mortgage Licensing System and Registry (NMLS).

Starting in April, all licensed debt collectors, small loan companies, motor vehicle sales finance companies, retail installment sales finance companies, insurance premium finance companies, check cashers, check sellers and foreign transmittal agencies will have to register on the NMLS, subject to the division’s approval of their information. Both current license holders and new applicants will have to use the system.

"The Division of Banks is proud to expand its use of NMLS," Commissioner David Cotney said. "This system has proven to be an effective tool in mortgage supervision by streamlining the regulatory process and enhancing consumer protection.  The expansion of NMLS will now bring the efficiencies and improved oversight to additional financial services industries." 

The NMLS was created in the wake of the sub-prime mortgage crisis as part of a series of stricter licensing measures for mortgage brokers and lenders, in part as a way to encourage better communication among state regulatory agencies. All 50 states and the District of Columbia participate.

The division said it hopes that by expanding the use of the NMLS to cover more non-bank lenders, the application process will be streamlined and processing times reduced.

"This is another important tool that will enhance our abilities to protect consumers in the financial services marketplace," said Barbara Anthony, Undersecretary of Consumer Affairs and Business Regulation

The division said it will send a letter to licensees in March with detailed instructions for transitioning their company and branches onto NMLS.