NMLS Certification: Guide to Background Checks
Updated on May 30, 2023
Written by
At a Glance: Completing the NMLS background check is a crucial step in obtaining an NMLS state license certification for a lending startup. The process includes obtaining and submitting fingerprints, waiting for the results of the background check, and addressing any issues that may arise. It’s important to carefully review the state-specific requirements as they may vary. The process may take several weeks, so it’s important to plan ahead and allow enough time to complete the process before applying for certification.
Obtaining an NMLS state license certification involves five mini-processes that can be grouped into application, education, and background check categories. Once a lending startup has passed the NMLS licensing exam, the next step is to complete the NMLS background check.
As discussed in our post on NMLS education, the large process of getting an NMLS state license certification can be looked at as five mini-process:
- Choosing state certification(s) to pursue
- Applying for NMLS State certification
- Completing the Pre-Licensing education
- Taking the NMLS State Licensing Exam
- Completing the background check
These five mini-processes can be grouped into application, education, and background check categories. In this post, we’ll look at the steps involved with the first category – NMLS background checks.
Completing Background Check
After a credit startup has passed the NMLS licensing exam, the next step is to complete the NMLS background check. Here are the general steps to complete the NMLS background check:
- Obtain Fingerprints
- Submit Fingerprints
- Await Results
- Address Any Issues
Read on to learn more about each step.
Obtain Fingerprinting
To complete the NMLS background check, you will need to be fingerprinted. You can obtain fingerprinting services through a third-party provider or at a designated location. You can find information on how to obtain fingerprinting services on the NMLS website.
Submit Fingerprints
Once you have obtained your fingerprints, you will need to submit them to the appropriate agency. The specific agency and process for submitting fingerprints may vary depending on the state(s) you are seeking certification in. You can find information on where and how to submit fingerprints on the NMLS website.
Await Results
After submitting your fingerprints, you will need to wait for the results of your background check. The background check will include a criminal history check and a credit check.
Address Any Issues
If the background check reveals any issues, such as criminal history or credit problems, you will need to address these issues before you can obtain NMLS state certification. This may include providing additional documentation or working with a credit repair service.
It’s important to note that the exact steps to complete the NMLS background check may vary slightly depending on the state(s) you are seeking certification in. You should carefully review the specific requirements for each state before beginning the background check process.
Final Thoughts
Completing the NMLS background check is a crucial step in obtaining an NMLS state license certification for a lending startup. By obtaining and submitting fingerprints, waiting for the results of the background check, and addressing any issues that may arise, founders can demonstrate their eligibility for certification. It’s important to note that the exact steps may vary depending on the state(s) of certification, so careful review of state-specific requirements is necessary. Completing the NMLS background check may take several weeks, so it’s important to plan ahead and allow enough time to complete the process before applying for certification.
NMLS Background Check FAQ
What is an NMLS background check?
An NMLS background check is a comprehensive check of a person’s criminal history, including their fingerprints and credit history, to determine their eligibility for an NMLS state license certification.
How do I request an NMLS background check?
To request an NMLS background check, you must first create an account on the NMLS website and follow the instructions provided. You will be required to provide personal information, including your fingerprints, and pay the required fees.
What information will be included in an NMLS background check?
An NMLS background check will include your criminal history, including any convictions or arrests, as well as your credit history and other personal information.
How long does an NMLS background check take?
The length of time it takes to complete an NMLS background check varies depending on the complexity of the check and the state(s) you are seeking certification in. It can take anywhere from a few days to several weeks.
What happens if my NMLS background check reveals criminal history?
If your NMLS background check reveals criminal history, it does not necessarily mean you will be denied NMLS state license certification. Each case is evaluated on a case-by-case basis, and factors such as the type of crime, how long ago it occurred, and your overall character and reputation will be taken into consideration. It’s important to be honest and forthcoming about any criminal history during the certification process.
Frank Gogol
A seasoned SEO expert, Frank has a long history of working with and for startups. Starting in mid-2018, Frank served as the SEO Strategist for Stilt, a fintech startup that provided fair loans for immigrants in the US and other underserved markets. While with the company, he scaled site traffic from zero to more than 1.5 million unique visits per month, driving the bulk of the company’s lead generation until it was acquired by J.G. Wentworth in December 2022. As employee #5 at Stilt, Frank was witness to, and part of, the successful building and sale of a fintech company, uniquely positioning him to create content for founders about all things startups.