Indecomm Global Services has expanded the number of states in which it is licensed with the additions of the states of Maryland and California. Being licensed ensures that Indecomm’s lender support services meet all regulatory requirements. The company’s licensing efforts represent a major investment and commitment by Indecomm in the continued expansion of its mortgage service offerings. With the passage of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act), licensing requirements became standardized for all mortgage companies that originate, broker, service, or fund loans. The SAFE Act requires residential mortgage loan originators to be registered with the Nationwide Mortgage Licensing System and Registry (NMLS). The NMLS is used by many state-licensed, non-depository mortgage companies, banks and credit union institutions as well as individuals to manage their state or federal registrations. The rules can be complex and each state can have its own unique requirements.
While Indecomm does not originate, broker, service, or fund loans, the company does provide mortgage companies with processing, underwriting, and origination support. Thus, it is required to meet the rules of each state in which it conducts business or be exempted from the requirements.
“Getting licensed is about developing the human capital in our firm so that we can better serve our customers,” said Rajan Nair, president, Financial Services Division, Indecomm Global Services. “The mortgage industry is more complicated than it was in the past and the licenses are harder to get. There are many nuances associated with the process of securing a license and we consider our prolific number of licenses and exemptions to be a distinct competitive advantage. Securing a license for a state is merely the first step. The process is ongoing. The license has to be maintained and renewed annually which is often an extensive process.”
One major complexity behind the licensing process is how states view business activities that are outside originating, brokering, servicing, or funding loans as is the case with Indecomm’s business model. Some states may determine that Indecomm qualifies for an exempt business model registration. Others may require Indecomm to be licensed as a mortgage lender or a broker due to the activities of its processors and underwriters. Indecomm is now helping its individual processors and underwriters become licensed in states that require it. Currently Indecomm holds licenses in 32 states under the SAFE Act and active efforts are in place to get the number of licenses or exemptions to 45 by the end of 2013.