As you probably know by now, every state licensed mortgage loan originator is required to complete a credit report authorization through NMLS. Even if your credit information was previously received by a state regulator, you must authorize the report. However, federally registered MLOs are not required to authorize a credit report pull.
The question ProSchools is often asked is why the credit report? It's because of a requirement from the SAFE Act. The SAFE Act says mortgage loan originator applicants must, “demonstrate financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a determination that applicants will operate honestly, fairly, and effectively”.
Each state regulator will independently review MLO’s credit information for licensees in its state. There is no automated standard or minimum credit score that will be enforced inside NMLS. The SAFE Act leaves it up to the discretion of each state regulatory body to develop its own standard for reviewing credit information and determining the financial responsibility of its licensees.
When the credit report is obtained, it will be done through a “soft pull” process which has no effect on the applicant's credit score.
Some states' deadlines have come and gone. Other states have a March 31, 2011 deadline. Here are some helpful links for more on the credit report process: