The Wisconsin Department of Financial Institutions announced that, starting Sept. 1, the agency will begin using the Nationwide Multistate Licensing System and Registry to manage sales finance company licenses.
It will require the transition of licenses to NMLS for adjustment service company, payday lender, and seller of checks licenses.
“We’re proud to expand our agency’s use of NMLS, bringing the efficiencies and improved oversight of NMLS to other financial services industries,” said DFI Secretary-designee Cheryll Olson-Collins. “NMLS is a secure, web-based, nationwide licensing system that allows companies to apply for, update, and renew their license authorities in one or more states conveniently and safely online. NMLS will allow us to improve our operations and provide better supervision of the adjustment service, payday lender, sales finance, and seller of checks industries by linking with other states to protect consumers.”
NMLS is a national database developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators that streamlines licensing, renewal, and other regulatory filings for both licensees and regulators. The system also facilitates cooperation among state regulators, which should reduce red tape and redundant work for both regulators and licensees who do business in multiple states. Currently, 59 state agencies and six federal agencies use the system to accept and process license applications and registrations. NMLS began operations on January 2, 2008.
Starting on September 1, 2023, the DFI will require all companies holding adjustment service company, payday lender, sales finance company, and seller of checks licenses to have a complete record in NMLS and submit it to the DFI for approval by October 31, 2023. Any company wishing to apply for a license must do so through NMLS starting on September 1, 2023.
The DFI will send an email to each licensee in July with detailed instructions for transitioning their company and branches onto NMLS. Licensees with questions should contact the DFI’s Licensed Financial Services area by calling (608) 261-7578 or emailing DFI_LFS@dfi.wisconsin.gov. For more information about NMLS, visit the online NMLS Resource Center.
