The Mortgage Licensing Group June 2026 Newsletter

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For Lenders, Brokers, & Servicers

Keeping you on top of lending related trends and policies that impact your licensing

State Regulators Are Now Driving Enforcement

The mortgage compliance landscape is shifting, and if you’re still watching the CFPB as your primary risk indicator, you may be looking in the wrong place.

Over the past year, we’ve seen a clear transition: State regulators are stepping in where federal oversight has slowed down. States like California, New York, and Michigan are increasing enforcement activity, expanding rulemaking, and taking a more aggressive stance on consumer protection.

For mortgage companies operating across multiple states, this creates a new reality:

  • Compliance risk is no longer centralized
  • Enforcement standards vary widely by state
  • Licensing exposure is increasing—often quietly

What this means for you:

If your compliance strategy is still built around federal expectations, you may already be out of alignment in certain states.

NMLS Changes Are Raising the Stakes

NMLS modernization efforts are introducing new layers of complexity:

  • Enhanced disclosure requirements
  • Ongoing system updates and workflow changes
  • Increased scrutiny on filings and data accuracy

These changes aren’t just administrative, they directly impact your ability to maintain and renew licenses without disruption.

What this means for you:

Even small process gaps can now lead to delays, deficiencies, or regulatory attention.

Requiring increased money, time and attention spent mitigating the additional risk created by these changes.

Companies Getting Caught Off Guard

The result of NMLS changes? Companies find themselves out of compliance without realizing it, until a renewal issue or regulatory inquiry surfaces.

Most licensing issues we’re seeing right now fall into a few categories:

  • Assuming federal guidance applies uniformly across states
  • Underestimating how quickly state rules are evolving
  • Relying on outdated internal processes for NMLS filings

What You Should Be Doing Now to stay ahead of these changes:

  • Review your licensing strategy on a state-by-state basis
  • Audit your NMLS processes for accuracy and timeliness
  • Reevaluate how you track regulatory updates across jurisdictions

This is no longer a “set it and forget it” function.

Licensing has become an active risk area!

If you’re unsure whether your current setup holds up under today’s environment, we can help you assess it. This is exactly the kind of work we handle for our clients every day.

Latest News on the Federal Reserve & Rates

Sworn in on May 22, 2026, Kevin Warsh replaced Jerome Powell as the current Chairman of the Federal Reserve. Previously serving as a Fed Governor and top economic advisor in the Bush administration, Warsh has been characterized as being more market-oriented than Powell.

What Effect will this have on Rates?

Inflation has been more persistent than expected (partly due to tariffs, energy prices, and strong economic data). The labor market remains relatively strong based on a solid May 2026 jobs report.

As a result, expectations for rate cuts in 2026 have been pushed back significantly. Some forecasts now point to possible cuts only in late 2026 or 2027.

Markets are watching Warsh’s first few FOMC meetings closely to see whether he leans more toward cutting rates or stays cautious on inflation.

Interest rates are currently holding steady at 3.50%–3.75% with limited near-term expectations for cuts due to inflation concerns.

We’re keeping an eye on this developing story.