As a mortgage broker, staying compliant with the Industry regulatory requirements is of utmost priority. Failure to maintain documents and good standing might result in suspension, license withdrawal, and other regulatory sanctions, which isn’t good for business. One of the ways to stay compliant is by submitting an annual financial statement with the NMLS 90 days after the fiscal year’s end. The financial statements provide a snapshot of your activities and are mandatory to maintain your operating license.
Mortgage broker’s financial statements requirement for NMLS license
According to the NMLS, a mortgage financial statement must meet the following criteria.
- An independent certified public accountant (CPA) firm must conduct the financial statement audit or review.
- The financial statement must comply with generally accepted accounting standards.
- The financial statement must have the balance sheets, income statement, cash flow statement, stockholders equity changes, and other important notes.
- When submitting a reviewed financial statement report, it must conform with the statement on standards for accounts and reviews.
- For a consolidated financial statement report where the licensee is not the parent entity, a consolidating schedule and breakdown of all consolidated entities must be in the financial statement.
Note: There may be additional requirements based on your annual revenue. Find out more information from the Financial statements requirements table.
Need Help?
Contact MetwallyCPA to conduct your financial statement audits or reviews for NMLS license renewal.
Mohamed founded Metwally CPA PLLC in 2020 in the Dallas-Fort Worth metropolitan area. He holds active CPA license in the state of Texas and California. Mohamed is the firm’s Executive Director. Mohamed has a Master of Science (M.S.) degree in Accounting from University of Dallas. He has extensive assurance experience in a wide variety of industries, and he also devotes considerable time consulting and working with organizations and CPA firms on internal controls, audit quality, automation, and accounting best practices. He has over 15 years of audit experience.
Prior to founding the firm, Mohamed worked for big 4 and national firms for over than 10 years in the assurance practice. Mohamed worked on private clients as well as public clients and specialized in financial services sector.
He is a member of the Texas CPA Practice Issues, Diversity and Inclusion, and Governmental Accounting and Single Audits Conference Committees of Texas Society of CPAs.
Mohamed is a member of the American Institute of Certified Public Accountants, member of the AICPA small business group, member of the American institute of Certified Management Accountants, and Texas Society of Certified Public Accountants.
