(Washington, DC) Commissioner Thomas E. Hampton of the District of Columbia Department of Insurance, Securities and Banking (DISB) said today that the agency plans to participate in the Residential Mortgage Licensing System now under development by the Conference of State Bank Supervisors (CSBS), and the American Association of Residential Mortgage Regulators (AARMR).

To date, 29 states have indicated their intent to participate in the nationwide Residential Mortgage Licensing System (RMLS) by the end of 2009. 

“This system will accomplish something that is unprecedented in the mortgage industry,” Hampton said.  “DISB plays a critical role in regulating a significant segment of the lending industry, and our participation in the system will enhance consumer protection and streamline the licensing process for mortgage regulators and the mortgage industry.” 

DISB’s participation in the system is intended to:

• improve the efficiency and effectiveness of state supervision of the U.S. mortgage market;
• fight mortgage fraud and predatory lending that costs consumers and the mortgage industry millions of dollars in losses each year;
• increase accountability among mortgage industry professionals; and
• unify and streamline state license processes for mortgage lenders and mortgage brokers.

“We are proud to announce this initial phase of participating states who are taking a leadership role in creating a unified and modern system of state mortgage supervision,” said Neil Milner, CSBS president and CEO. “By announcing their intent to participate, these state agencies are taking a leadership role in this initiative.”

“The importance of this initiative is underscored by the number of state agencies indicating their intent to come on the system during the initial development phase,” said George Kinsel, president, AARMR. “These states are creating the critical mass necessary for state supervision of the mortgage industry to become more uniform, more efficient and more effective.”

The system will be used by state residential mortgage regulators to accept and process newly designed national, uniform license applications and renewal forms that have been created by state regulators over the past two years. Licensees will be able to electronically manage a single record in the system to apply for, amend, renew and surrender licenses issued by one or more state mortgage regulators. The system is scheduled to go operational in January 2008 and DISB anticipates joining RMLS some time in 2009 when full functionality for its initial release is completed.

Other state agencies announcing their commitment to the system include Alabama, Arizona, Arkansas, Connecticut, Georgia, Idaho, Indiana Department of Financial Institutions, Indiana Secretary of State, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont and Wyoming.

Additional states have expressed interest in participating, but are still determining their timeframe for participation.

More information about the CSBS/AARMR Residential Mortgage Licensing System may be found on the web at www.csbs.org.