How Wall Street Tracks MBS Down To Loan Level

Part of the Dodd Frank regulation package was the Nationwide Mortgage Licensing System and Registry (NMLS), which requires mortgage loan agents to pass exams, background checks, complete annual continuing education, and disclose basically everything about themselves in the same way securities and other financial professionals do. Same goes for mortgage firms. This was effective last year.

NMLS is a new analytical tool for Wall Street firms buying or looking to buy mortgage backed securities (MBS) from mortgage origination firms. They can track loans in MBS pools back to the company and loan agent level. It’s still early in the NMLS ramp-up and ability to slice and dice data, but it’s a positive development for the industry as main street loan originations make their way into Wall Street securities.

Here’s loan agent and mortgage company counts through June 30 (hat tip Rob), and below that is a link to the NMLS Q1 and Q2 report with very interesting stats and charts. Also below is the NMLS consumer access link that you can use to research loan agents:

-16,153 companies holding 30,945 licenses
-17,387 branches holding 26,211 licenses
-106,881 individuals with 201,469 licenses

NMLS Stat Report: Q1 and Q2
NMLS Consumer Access