Non-depository financial institutions can renew their operating licenses for 2018 starting this week, according to the Conference of State Bank Supervisors (CSBS).
The renewal period is between now and Dec. 31. In years past, it was open for just one month, between Dec. 1 and Dec. 31. Licensing renewals are done through the Nationwide Multistate Licensing System (NMLS), which CSBS operates on behalf of state regulators.
“Submitting renewal requests in November as opposed to December significantly reduces the chance of a license being terminated on Jan. 1, 2018,” said Kelly O’Sullivan, chair of the NMLS Policy Committee and deputy commissioner of the Montana Division of Banking and Financial Institutions.
Last year, CSBS opened it the licensing renewals in November and found that it was an effective strategy.
“In 2016, almost 93 percent of all renewal applications submitted by Nov. 30 were approved by Dec. 31,” O’Sullivan said. “Only about 49 percent of license renewals requested after Dec. 15 were approved by the end of the year.”
CSBS is in the process of notifying about 600,000 individuals who are licensed to provide mortgage, money transmission, and consumer financial services. They can renew their license through the NMLS website. Those that do not renew on time may not be able to conduct business in 2018.