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WBK Industry News - State Regulatory Developments

Maryland Adopts Regulation Expanding the use of NMLSR Unique Identifiers

The Maryland Commissioner of Financial Regulation adopted new regulations, effective July 3, 2017, allowing licensed mortgage lenders and mortgage loan originators (MLO) to include their Nationwide Mortgage Licensing System and Registry (NMLSR) unique identifier on recorded security instruments and foreclose notices.

By way of background, Maryland law currently provides that if a licensed mortgage lender is named in a promissory note secured by residential real property, the mortgage lender’s Maryland license number must be filed with the recorded security instrument. Additionally, if a licensed MLO originates a mortgage loan on residential property that is secured by a recorded security instrument, the MLO’s Maryland license number must also be filed with the recorded security instrument.

Current Maryland law also requires that notices of intent to foreclose, which are sent at least 45 days before the filing of an action to foreclose a mortgage or deed of trust on residential property, must contain the Maryland license number of licensed mortgage lenders and MLOs if this information is included on or recorded with the security instrument securing the mortgage loan, or is otherwise known to the person sending the notice.

Under the new regulation, licensed mortgage lenders and MLOs may include their NMLSR unique identifier instead of their Maryland license number in the recorded security instrument and in a notice of intent to foreclose.

The new regulation is available here.