This is the fourth in our article series on mandatory mortgage activity disclosures required by the California Bureau of Real Estate (CalBRE) and the Nationwide Mortgage Licensing System (NMLS). This article discusses the mortgage call report required by the NMLS.
Mortgage activity reporting
California Bureau of Real Estate (CalBRE) licensees submit periodic reports about their consumer mortgage activity and financial condition to both the CalBRE and the Nationwide Mortgage Licensing System (NMLS). [Calif. Business and Professions Codes §§10166.07-08; 12 United States Code §5104(e)]
These loan activity reports are:
- the mortgage loan activity notification (CalBRE Form RE 866), filed with the CalBRE [Bus & P C §10166.02];
- the business activity report, filed with the CalBRE [Bus & PC §10166.07];
- the residential mortgage loan report (CalBRE Form RE 857), filed with the CalBRE [Calif. Health and Safety Code §§35815-35816]; and
- the mortgage call report, filed with the NMLS. [12 USC §5104(e), Bus & P C §10166.08]
CalBRE licensees file the mortgage loan activity notification form to notify CalBRE when they commence making, arranging or servicing consumer mortgages. [See CalBRE Form RE 866]
CalBRE brokers file the business activity report to notify CalBRE of their annual mortgage activities.
CalBRE brokers who are direct lenders file the residential mortgage loan report to report their annual residential mortgage activity to the CalBRE. [See CalBRE Form RE 857]
Editor’s note — This article is targeted towards CalBRE-licensed brokers with MLO endorsements. However, all MLO companies are required to make this filing.
The mortgage call report
The mortgage call report is administered by the NMLS. Data collected by the mortgage call reports are used to track and enhance regulatory oversight.
For example, when the mortgage call report shows reverse mortgage originations are rising, regulators know to focus consumer protection efforts on reverse mortgages.
The mortgage call report is generated quarterly. It is filed with the NMLS by any CalBRE-licensed broker MLO who has a company MLO endorsement as a:
- sole proprietorship; or
Like the business activity report, sales agents and broker associate MLOs do not file this report. Instead, the broker of record for the MLO company, called the reporting broker, provides data on their individual mortgage activity and the mortgage activity of licensees they employ.
Contents of the mortgage call report
Two types of mortgage call reports exist:
- the standard mortgage call report; and
- the expanded mortgage call
Editor’s note — The mortgage call reports were recently amended to include information about qualified mortgages and additional servicing and mortgage application data. The changes are effective for reports filed on or after April 1, 2015. Sample forms, instructions and other documents may be found at //mortgage.nationwidelicensingsystem.org/slr/common/mcr/Pages/default.aspx.
The expanded mortgage call report is required for reporting CalBRE brokers who:
- sell mortgages to Fannie Mae or Freddie Mac;
- service mortgages for Fannie Mae or Freddie Mac; or
- issue mortgages on behalf of Ginnie Mae.
All other reporting CalBRE brokers complete the standard mortgage call report.
Both mortgage call reports contain:
- a residential mortgage loan activity (RMLA) report; and
- a financial condition (FC) report.
The residential mortgage loan activity report
The RMLA for a standard mortgage call report contains:
- a company-level report; and
- a state-level report.
The company-level report provides information about the broker’s MLO company’s nationwide mortgage activity, including:
- identification of providers of lines of credit available to the broker’s MLO company, the total credit limit and current amount available at the end of the reporting period;
- total nationwide servicing activity by total dollar amount, mortgage count and average mortgage size; and
- delinquency data on serviced mortgages.
The state-level report is completed for each state in which the MLO conducts business. For each state, mortgage activity reported includes the dollar amount, count and average dollar amount of:
- mortgage applications;
- closed mortgages, by channel (brokered, retail or wholesale), organized by:
- mortgage type (conventional, FHA-insured, etc.);
- property type;
- mortgage purpose; and
- lien position;
- the amount of fees collected;
- reverse mortgages;
- qualified versus non-qualified mortgages;
- mortgage repurchase information;
- the total revenue from MLO operations;
- servicing data; and
- mortgages originated by each MLO employed, including the name and NMLS ID of each MLO employed.
The state-level report in an expanded mortgage call report additionally includes reporting of the dollar amount, count and average dollar amount of mortgages by features such as:
- whether the mortgage has a fixed or adjustable interest rate;
- whether the mortgage is classified as a jumbo or non-jumbo;
- the borrower’s FICO score;
- the loan-to-value ratio (LTV);
- the warehouse period; and
- additional servicing detail.
The financial condition report
The financial condition report contains information about the MLO company’s:
- liabilities and equity;
- cash flow; and
- non-interest expenses and net income.
Click here for a sample of the financial condition report for a standard mortgage call report. The financial condition report starts on page 6.
The expanded financial condition report requires a much greater amount of detail for each of categories above.
Click here for a sample of the financial condition report for an expanded mortgage call report. The financial condition report starts on page 9.
Editor’s note — The requirement to file the financial condition report is not the same as the requirement to provide financial statements to verify net worth.
CalBRE does not impose a net worth requirement on MLOs. Thus, it does not require CalBRE licensees to file financial statements as part of the MLO endorsement process.
However, the NMLS requires licensed MLO brokers who have a company MLO endorsement to file the financial condition report, whether a net worth requirement applies or not.
Filing the mortgage call report
Both parts of the mortgage call report are filed online through the MLO’s NMLS account. Data are compiled during the year using mortgage origination software, such as Calyx Point.
For brokers filing the standard mortgage call report:
- the RMLA is filed within 45 days of the end of each calendar quarter; and
- the financial condition report is filed within 90 days of the end of the broker’s fiscal year.
For brokers filing the expanded mortgage call report, both the RMLA and the financial condition report are filed within 45 days of the end of each calendar quarter.
A reporting broker files both parts of the mortgage call report even if their MLO company has no mortgage activity to report. On the RMLA, the reporting broker simply checks the “No Activity to Report” button. A full financial condition report is still required.
Company-specific data, such as financial data, is not made available to the public. Aggregate mortgage call report data is available on the NMLS website: //mortgage.nationwidelicensingsystem.org/about/Pages/Reports.aspx.
Failure to file
When a reporting broker fails to file a mortgage call report within the designated timeline, a deficiency notation is placed on their MLO endorsement.
Additionally, this failure can result in state regulatory action preventing license or endorsement renewal. [From “Public Comment Request for NMLS Call Report,” March 15, 2010]