Introduction to Becoming an MMC EIC

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Background and Purpose Significant growth in the nonbank mortgage market, specifically the volume of state licensed companies and mortgage loan originators 1 , has bolstered the need to develop an enhanced networked approach to mortgage supervision. The Mortgage One Company, One Exam (OCOE) Protocol (“Protocol”) is an approach to multi-state mortgage supervision that enables state agencies to increase coordination and share supervisory resources to minimize regulatory burden and overlap. The Conference of State Bank Supervisors (CSBS) Non-Depository Supervisory Committee (NDSC) 2 and the Multi state Mortgage Committee (MMC) 3 oversee this Protocol. Under the OCOE supervisory approach, all state agencies are encouraged to participate in or accept the result of one multi-state exam for one company. The end goal is to empower the state system to operate a single, nationwide, networked, supervisory system using common policies, practices, and standards to prioritize examinations based on risk and resource availability.

Overview of the recurring process established by this Protocol:

Acronyms and Definitions

AARMR

American Association of Residential Mortgage Regulators

AFR CFPB CMS

Area for Review

Consumer Financial Protection Bureau Compliance Management System

EIC

Examiner-in-Charge

FFIEC

Federal Financial Institutions Examination Council

IR

Information Request

LEF

Lending Examination Format Multi-state Mortgage Committee Multi-state Mortgage Entity

MMC MME NDSC NMLS OCOE OMC

Non-Depository Supervisory Committee Nationwide Multi-state Licensing System

One Company, One Exam OCOE Mortgage Company

1 SRR Annual Reports available on the NMLS Resource Center show the volume of licensed companies and individuals over the last 10 years. 2 The NDSC is a standing committee of the CSBS Board established to provide commissioner level oversight of nonbank supervision and a reporting mechanism to the Board. 3 The MMC is established under the CSBS/AARMR Nationwide Cooperative Agreement for Mortgage Supervision and consists of ten representatives, five of which are appointed by CSBS and five of which are appointed by the American Association of Residential Mortgage Regulators (AARMR).

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