Alabama to Transition 10 License Types to NMLS September 1

Alabama to Transition 10 License Types to NMLS September 1

The Alabama State Banking Department announced that, effective September 1, 2026, it will begin using NMLS to manage Deferred Presentment, Pawnshop, Small Loan, Section 22 Small Loan, and Non-Mortgage Consumer Credit licenses at both the company and branch level (Regulation 155-2-1-.08).

Existing licensees must submit a transition filing in NMLS between September 1 and December 31, 2026; failure to transition will result in license expiration on December 31, 2026.

Key Updates:

• Ten license types are moving to NMLS: five company licenses and five corresponding branch licenses covering deferred presentment, pawnshop, small loan, Section 22 small loan, and non-mortgage consumer credit activity.
• Transition filings require an MU1 Form for the company and, if applicable, an MU3 Form for each licensed branch, along with MU2 Forms for control persons.
• Consumer Credit licensees engaged solely in non-mortgage activity must transition to the new Non-Mortgage Consumer Credit license; those conducting mortgage activity should disregard and renew as normal.
• The transition filing replaces the standard renewal cycle, and approved licenses will remain active through December 31, 2027. See the Department's transition letter for filing instructions.

FS Vector monitors ongoing state licensing requirements to help ensure compliance with the latest requirements. Contact FS Vector for assistance navigating the Alabama NMLS transition.

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