2011-11-15T13:59:07-06:00 2010-12-31 TATE AND TRYON 2021 L STREET NW SUITE 400 WASHINGTON DC 20036 990 2010-01-01 522080072 CONFERENCE OF STATE BANK SUPERVISORS INC CONF 2022962840 1129 20TH STREET NW NO 900 WASHINGTON DC 20036 A NEIL MILNER 2022962840 2011-11-15 1 BRIAN G FUNK 2022932200 2010 2016-02-24 21:20:13Z X CSBS A NEIL MILNER 1129 20TH STREET NW NO 900 WASHINGTON DC 20036 72590715 0 X WWW.CSBS.ORG X 1996 DC TO SUPPORT THE LEADERSHIP ROLE OF STATE BANKING SUPERVISORS IN ADVANCING THE STATE BANKING SYSTEM; ENHANCING CONSUMER PROTECTION; ENSURING SAFETY AND SOUNDNESS; PROMOTING ECONOMIC GROWTH; AND FOSTERING INNOVATIVE STATE REGULATION OF THE FINANCIAL SERVICES INDUSTRY. 20 20 59 20 0 0 0 0 21244862 72233955 21462 33858 13492 331777 21279816 72599590 511000 511000 0 0 5367684 6762235 0 0 0 14628953 48652149 20507637 55925384 772179 16674206 19948793 37661063 15864037 16763546 4084756 20897517 X THE MISSION OF THE CONFERENCE OF STATE BANK SUPERVISORS (CSBS) IS TO SUPPORT THE LEADERSHIP ROLE OF STATE BANKING SUPERVISORS IN ADVANCING THE STATE BANKING SYSTEM; ENHANCING CONSUMER PROTECTION; ENSURING SAFETY AND SOUNDNESS; PROMOTING ECONOMIC GROWTH; AND FOSTERING INNOVATIVE STATE REGULATION OF THE FINANCIAL SERVICES INDUSTRY.THE STATE BANKING DEPARTMENTS REGULATE VARIOUS TYPES OF FINANCIAL ACTIVITY WITHIN THEIR JURISDICTIONS, INCLUDING INSURED DEPOSITORY INSTITUTIONS SUCH AS BANKS, CREDIT UNIONS AND THRIFTS, MORTGAGE LENDERS, CONSUMER FINANCE LENDERS, PAYDAY LENDERS, CHECKER CASHERS, AND MONEY SERVICES BUSINESSES. 1 0 THE LARGEST PROGRAM IS THE ONGOING OPERATION OF THE NATIONWIDE MORTGAGE LICENSING SYSTEM AND REGISTRY (NMLS). NMLS IS THE LICENSING SYSTEM OF RECORD FOR MORTGAGE REGULATORY AGENCIES IN ALL 50 STATES, THE DISTRICT OF COLUMBIA, GUAM, PUERTO RICO, AND U.S. VIRGIN ISLANDS. NMLS IS THE OFFICIAL AND SOLE SYSTEM FOR MORTGAGE COMPANIES AND INDIVIDUALS SEEKING TO APPLY FOR, AMEND, RENEW AND SURRENDER LICENSES MANAGED IN NMLS ON BEHALF OF STATE REGULATORY AGENCIES. NMLS ITSELF DOES NOT GRANT OR DENY LICENSE AUTHORITY. LAUNCHED IN JANUARY 2008, NMLS IS OPERATED BY STATE REGULATORY REGISTRY LLC (SRR), A WHOLLY OWNED SUBSIDIARY OF CSBS, ON BEHALF OF STATE REGULATORS. THE SECURE AND FAIR ENFORCEMENT OF MORTGAGE LICENSING ACT OF 2008 (THE SAFE ACT) INTRODUCED NEW REQUIREMENTS FOR LICENSEES, SUCH AS CRIMINAL BACKGROUND CHECKS, A CREDIT HISTORY REVIEW, PRE-LICENSURE EDUCATION REQUIREMENTS, AND BOTH A NATIONAL AND STATE-SPECIFIC TEST COMPONENTS EACH APPLICANT MUST PASS TO OBTAIN A LICENSE. AS OF NOVEMBER 1, 2010, ALL OF THESE FUNCTIONALITIES ARE AVAILABLE THROUGH NMLS. ALSO, THE SAFE ACT REQUIRES NMLS TO PROVIDE LICENSING INFORMATION AND EMPLOYMENT HISTORY INFORMATION TO CONSUMERS FREE OF CHARGE. NMLS MET THIS REQUIREMENT IN JANUARY 2010 BY LAUNCHING NMLS CONSUMER ACCESS (WWW.NMLSCONSUMERACCESS.ORG), A WEBSITE FOR THE PUBLIC TO CONFIRM THAT THE MORTGAGE COMPANY OR MORTGAGE PROFESSIONALS WITH WHOM THEY WISH TO CONDUCT BUSINESS IS LICENSED IN THEIR STATE. IN ADDITION, THE SAFE ACT REQUIRES ALL MORTGAGE LOAN ORIGINATORS AFFILIATED WITH AN INSURED DEPOSITORY INSTITUTION TO BE REGISTERED WITH NMLS. REGISTRATION OF THESE INDIVIDUALS HAS BEEN COMPLETED ON JULY 29, 2011.IN 2010, MAJOR MILESTONES ACHIEVED BY THE STATES, CSBS, SRR, AND THE NMLS INCLUDED:--> 24 NEW STATE AGENCIES BEGAN USING NMLS AS THE SYSTEM OF RECORD FOR THEIR LICENSEES, BRINGING THE TOTAL NUMBER OF STATE AGENCIES PARTICIPATING ON NMLS TO 58.--> ALL STATES REQUIRED LICENSEES TO MEET STATE LAW REQUIREMENTS CONTAINED IN THE SAFE ACT.--> SRR ENTERED INTO A CONTRACT WITH FEDERAL FINANCIAL REGULATORY AGENCIES TO MODIFY NMLS TO REGISTER MORTGAGE LOAN ORIGINATORS AND THEIR EMPLOYERS THAT ARE DEPOSITORY OR FARM CREDIT INSTITUTIONS, OR FEDERALLY REGULATED OPERATING SUBSIDIARIES.--> MAJOR FUNCTIONALITY COMPONENTS WERE ADDED TO THE NMLS, INCLUDING NMLS CONSUMER ACCESS, CRIMINAL BACKGROUND CHECKS, CREDIT CHECKS, ENHANCED RENEWALS AND REGISTRATION OF DEPOSITORY MORTGAGE LOAN ORIGINATORS (REGISTRATION BECAME OPERATIONAL ON JANUARY 31, 2011).--> NMLS DEVELOPED AND LAUNCHED 27 ADDITIONAL UNIQUE STATE TEST COMPONENTS FOR MORTGAGE LOAN ORIGINATORS FOR A TOTAL OF ONE NATIONAL AND 52 INDIVIDUAL STATE TEST COMPONENTS. NMLS ADMINISTERED MORE THAN 368,000 TEST COMPONENTS IN 2010, BRINGING THE TOTAL ADMINISTERED SINCE JULY 2009 TO 396,390 TEST COMPONENTS.--> NMLS CONTINUED TO MANAGE EXISTING CONTINUING EDUCATION COURSE PROVIDERS AND APPROVE NEW COURSE PROVIDERS. IN 2010, 90 NEW COURSE PROVIDERS WERE APPROVED, FOR A TOTAL OF 247 APPROVED COURSE PROVIDERS, WHO DELIVERED 1,913,903 HOURS OF EDUCATION THROUGH 974 NMLS-APPROVED COURSES.--> THE MORTGAGE TESTING AND EDUCATION BOARD (MTEB) CONDUCTED NUMEROUS ADMINISTRATIVE PROCEDURES CONCERNING MORTGAGE LOAN ORIGINATOR TESTING AND EDUCATION MATTERS, COURSES AND PROVIDERS.--> AS PART OF SAFE ACT REQUIREMENTS FOR MORTGAGE LOAN ORIGINATORS, NMLS IMPLEMENTED AND COMPLETED A STATE AGENCY CERTIFICATION PROCESS TO RECOGNIZE PREVIOUSLY COMPLETED STATE TESTING AND EDUCATION.--> SRR HELD TWO PUBLIC INDUSTRY MEETINGS WITH THE NMLS OMBUDSMAN. --> NMLS MANAGED 176,032 UNIQUE ENTITIES (COMPANIES, BRANCHES, AND MORTGAGE LOAN ORIGINATORS) WHICH HELD 296,975 STATE LICENSES FROM THE 58 PARTICIPATING STATE AGENCIES.--> FOUR STATE MORTGAGE REGULATORY AGENCIES RECEIVED CERTIFICATES OF ACCREDITATION BY THE CSBS/AARMR MORTGAGE ACCREDITATION PROGRAM. SUCH AGENCIES ARE CONSIDERED COMPLIANT WITH THE SAFE ACT SUPERVISORY PERFORMANCE STANDARDS UNDER THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT'S PROPOSED SAFE ACT RULE.--> NMLS COLLECTED AND DISBURSED $76 MILLION IN STATE LICENSE FEES.--> THE NMLS CALL CENTER ANSWERED MORE THAN 739,865 INQUIRIES FROM USERS.--> THE NMLS RESOURCE CENTER WEBSITE RECEIVED 4.6 MILLION VISITS.--> SRR CONDUCTED MORE THAN 29 INDUSTRY AND REGULATOR USER TRAINING SESSIONS, INSTRUCTING MORE THAN 2,500 PROFESSIONALS.--> NMLS PROCESSING FEES REMAINED UNCHANGED FOR THE THIRD STRAIGHT YEAR OF NMLS OPERATIONS. THE CSBS STATE-FEDERAL SUPERVISORY SYMPOSIUM (SFSF), WHICH WAS HELD IN BOSTON, MA IN MAY 2010, WAS HELD TO PROVIDE A FORUM FOR STATE AND FEDERAL FINANCIAL REGULATORS TO DISCUSS REGULATORY AND LEGISLATIVE POLICY ISSUES FACING FINANCIAL REGULATORS AND THE FINANCIAL SYSTEM AS A WHOLE. THE SFSF PROVIDED ALL ATTENDEES AN OPPORTUNITY TO ENGAGE IN FRANK DIALOGUE ON THE CHALLENGES AND OPPORTUNITIES FACING STATE AND FEDERAL REGULATORS ALIKE. THIS YEAR'S SFSF WAS ATTENDED BY 86 STATE REGULATORS FROM 36 STATES AS WELL AS 48 FEDERAL REGULATORS REPRESENTING EIGHT FEDERAL AGENCIES, INCLUDING THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE SYSTEM, THE FINANCIAL CRIMES ENFORCEMENT NETWORK, AND THE OFFICE OF THE COMPTROLLER OF THE CURRENCY. THE CSBS REGULATORY DIVISION CONTINUED TO ENHANCE AND EXPAND ITS WORK OVER THE PAST YEAR. THE REGULATORY DIVISION HAS FACILITATED COORDINATION AMONG THE FEDERAL REGULATORY AGENCIES (THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FARM CREDIT ADMINISTRATION, THE FEDERAL RESERVE SYSTEM, THE NATIONAL CREDIT UNION ADMINISTRATION, THE OFFICE OF THE COMPTROLLER OF THE CURRENCY, AND THE OFFICE OF THRIFT SUPERVISION) TO FINALIZE REGULATIONS REQUIRING MORTGAGE LOAN ORIGINATORS AFFILIATED WITH INSURED DEPOSITORY INSTITUTIONS TO REGISTER WITH THE NATIONWIDE MORTGAGE LICENSING SYSTEM AND REGISTRY (NMLS). REGISTRATION OF THESE INDIVIDUALS BEGAN ON JANUARY 31, 2011.THE REGULATORY DIVISION HAS ALSO BEEN WORKING ON THE RECENTLY-ENACTED DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT OF 2010. THE DODD-FRANK ACT REQUIRED SUBSTANTIAL WORK BY CSBS STAFF TO REVIEW AND ANALYZE THE LAW AND HOW IT WILL IMPACT STATE REGULATORS AND STATE-SUPERVISED ENTITIES. WORK IN THIS AREA REMAINS ONGOING.THE CSBS REGULATORY DIVISION ALSO SERVED AS A LIAISON BETWEEN STATE REGULATORS AND THEIR FEDERAL COUNTERPARTS TO ENSURE CONSISTENT AND COMPREHENSIVE SUPERVISION OF STATE-CHARTERED BANKS THROUGHOUT THE ECONOMIC CRISIS AND FINANCIAL DOWNTURN. FOR EXAMPLE, CSBS STAFF HAS FACILITATED DIALOGUE WITH STAFF OF THE NEWLY CREATED CONSUMER FINANCIAL PROTECTION BUREAU (CFPB) TO ENSURE THEY UNDERSTAND THE VALUABLE AND CRITICAL ROLE THE STATES PLAY IN CONSUMER PROTECTION. AS A FIRST STEP IN STREAMLINING THE SUPERVISORY PROCESS BETWEEN THE STATES AND THE CFPB, THE CFPB SIGNED AN INFORMATION SHARING MEMORANDUM OF UNDERSTANDING WITH CSBS AND SEVERAL STATES IN JANUARY 2011. THE AGREEMENT PROVIDES A FRAMEWORK FOR COORDINATION AND INFORMATION SHARING, WHICH THE STATES AND THE CFPB CAN BUILD UPON AS THEY MOVE FORWARD.CSBS STAFF ALSO CONTINUED TO PARTICIPATE IN THE DEVELOPMENT OF INTERAGENCY EXAMINATION TOOLS AND ENHANCED THE CSBS WEBSITE WITH RESOURCES FOR STATE EXAMINERS TO UTILIZE AS THEY SUPERVISE FINANCIAL INSTITUTIONS. 0 0 0 1 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 24 0 59 1 0 0 0 0 1 1 0 X 20 20 0 0 1 0 1 1 1 1 1 1 0 1 1 1 1 1 1 1 1 0 X THE ORGANIZATION 2022962840 1129 20TH STREET NW NO 900 WASHINGTON DC 20036 X JOHN P DUCREST 3.00 X X 0 0 0 WILLIAM S HARAF 3.00 X X 0 0 0 GREG GONZALES 3.00 X X 0 0 0 CANDACE A FRANKS 3.00 X X 0 0 0 CHARLES A VICE 3.00 X X 0 0 0 JOSEPH A SMITH JR 3.00 X X 0 0 0 SCOTT D CLARKE 3.00 X 0 0 0 GAVIN M GEE 3.00 X 0 0 0 JAMES M SCHIPPER 3.00 X 0 0 0 CHARLES G COOPER 3.00 X 0 0 0 MARK KAUFMAN 3.00 X 0 0 0 VAUGHN M NORING 3.00 X 0 0 0 J THOMAS CARDWELL 3.00 X 0 0 0 LLOYD P LAFOUNTAIN III 3.00 X 0 0 0 DAVID H MILLS 3.00 X 0 0 0 JOHN D HARRISON 3.00 X 0 0 0 ROBERT J ENTRINGER 3.00 X 0 0 0 DAVID C TATMAN 3.00 X 0 0 0 SCOTT JARVIS 3.00 X 0 0 0 LAUREN KINGRY 3.00 X 0 0 0 ARTHUR NEIL MILNER 37.50 X 517941 57549 43116 SHARON G BIAS 37.50 X 146802 16312 9044 THOMAS E HARLOW 37.50 X 86281 9587 4593 JOHN RYAN 37.50 X 351174 0 26508 WILLIAM MATTHEWS 37.50 X 274698 0 19624 JOHN GORMAN 37.50 X 274368 0 36930 MICHAEL STEVENS 37.50 X 222737 24749 19093 MARGARET LIU 37.50 X 239077 0 20430 BARBARA MICHELS 37.50 X 232655 0 16719 TIMOTHY DOYLE 37.50 X 213238 0 17894 PETER MARKS 37.50 X 155691 0 20154 MARY BETH QUIST 37.50 X 164566 18286 25949 CHARLES CROSS 37.50 X 94328 94328 17662 PETER WALLACE 37.50 X 121919 0 15083 VICKIE SLATER 37.50 X 121537 0 4443 MARY PFAFF 37.50 X 117511 0 17132 3334523 220811 314374 23 0 1 0 FINANCIAL INDUSTRY REGULATORY AUTHORITY 9509 KEY WEST AVE ROCKVILLE MD 20850 DEVELOPMENT/HOSTING OF NMLS 40380333 FEDERAL BUREAU OF INVESTIGATION CJIS DI 1000 CUSTER HOLLOW RD CLARKSBURG WV 26306 NMLS CRIMINAL BACKGROUND CHECKS 2522123 FIELDPRINT 400 LIPPINCOTT DR SUITE 114 MARLTON NJ 08053 NMLS FINGERPRINTING SERVICES 1708071 TMT DEMONET PO BOX 13606 NEWARK NJ 07188 LANDLORD OF OFFICE SPACE 860470 PRINCIPAL GROUP PO BOX 9394 DES MOINES IA 50306 PENSION ADMINISTRATOR/ACTUARY 559846 10 MLO TESTING/EDUCATION 900099 37227978 37227978 NMLS PROCESSING FEES 518210 29741211 29741211 MEMBERSHIP DUES/ASSESS 900099 5115725 5115725 SFSF & ANNUAL MEETING 900099 114897 114897 EVENTS/SUMMITS 900099 22925 22925 11219 11219 72233955 22383 22383 2600 -8875 11475 11475 11475 GAIN FROM SETTLEMENT 900099 321782 321782 MISCELLANEOUS 900099 9995 9995 331777 72599590 72555737 0 43853 511000 3255951 2228935 859094 70785 347470 80299 70467 18500 260086 23972 295947 12371146 836847 295606 337262 151021 3298393 57583 MLO TESTING FEES 18517437 FINGERPRINT PROCESSING 6066461 MLO EDUC COURSE FEES 2819303 BANK CHARGES 2088470 CREDIT REPORT FEES 665654 397695 55925384 162975 177174 3165935 12507280 844624 1879991 184115 585725 26838763 7009517 14035039 19829246 1065508 1225874 490597 1455773 19948793 37661063 3873716 9953257 2997469 2326313 4994763 19063 3998089 4464913 15864037 16763546 X 4084756 20897517 4084756 20897517 19948793 37661063 X 16674206 138555 X X 0 1 1 X 0 0 0 0 5115725 335345 335345 0 335345 1 2555433 139478198 139117068 2916563 0 321927 274779 47148 1011105 676266 334839 25505731 6058472 19447259 19829246 ACCRUED PENSION COST 2768027 DAY WITH THE COMMISSIONER 68704 DEFERRED COMPENSATION LIABILITY 371374 DUE TO RELATED ORGANIZATION 1255205 FUNDS HELD FOR OTHERS 1603 4464913 72599590 55925384 16674206 138555 138555 16812761 72726670 138555 138555 72588115 11475 11475 72599590 55913909 -11475 -11475 55925384 0 55925384 PART IV, LINE 1B: WE ARE A TEMPORARY CUSTODIAN OF FUNDS COLLECTED FROM MORTGAGE LICENSEES WHO USE THE NATIONWIDE MORTGAGE LICENSING SYSTEM AND REGISTRY. THESE FUNDS ARE NOT RECORDED ON OUR BALANCE SHEET. WE HOLD THE FUNDS IN A BANKING/SWEEP ACCOUNT FOR APPROXIMATELY EIGHT BUSINESS DAYS IN ORDER TO ASSURE THAT FUNDS COLLECTED THROUGH ACH AND CREDIT CARD CHARGES HAVE TIME TO CLEAR THE BANKING SYSTEM; THEN WE REMIT THE COLLECTED FUNDS TO THE APPROPRIATE STATES AND TRANSFER THE PORTION BELONGING TO SRR AS A PROCESSING FEE TO OUR OWN OPERATING ACCOUNT. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ORGANIZATION BELIEVES THAT IT HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN, AND THEREFORE, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS. MANAGEMENT CONSIDERS THE YEARS FROM 2007 THROUGH 2010 TO BE OPEN FOR EXAMINATION BY TAXING AUTHORITIES. PART XII, LINE 4B - OTHER ADJUSTMENTS: GAIN ON DISPOSAL OF ASSETS 11,475. PART XIII, LINE 2D - OTHER ADJUSTMENTS: GAIN ON DISPOSAL OF ASSETS -11,475. 1 EDUCATION FOUNDATION OF STATE BANK SUPERVISORS 1129 20TH STREET NW 9TH FLOOR WASHINGTON DC 20036 521347951 501(C)(3) 511000 SUPPORTS THE EDUCATION AND TRAINING OF STATE BANK AND MORTGAGE REGULATORS 1 0 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: CSBS AND SRR PROVIDE PERIODIC SUPPORT TO THE EDUCATION FOUNDATION OF STATE BANK SUPERVISORS (EFSBS), AS EFSBS SERVES AS THE CHARITABLE ARM OF CSBS. THE GOVERNING BOARD OF CSBS RECEIVES PERIODIC UPDATES ON THE PROGRAM ACCOMPLISHMENTS OF THE EFSBS. X X X 1 1 X X X X 1 0 0 ARTHUR NEIL MILNER 434972 48330 41850 4650 41119 4569 23130 2570 21912 2435 562983 62554 0 0 SHARON G BIAS 89492 9944 0 0 57310 6368 3429 381 5330 592 155561 17285 0 0 JOHN RYAN 289235 0 58488 0 3451 0 17600 0 10675 0 379449 0 0 0 WILLIAM MATTHEWS 227664 0 46165 0 869 0 8394 0 13148 0 296240 0 0 0 JOHN GORMAN 227663 0 46165 0 540 0 25700 0 13287 0 313355 0 0 0 MICHAEL STEVENS 181771 20197 40590 4510 376 42 8001 889 10798 1200 241536 26838 0 0 MARGARET LIU 198137 0 40000 0 940 0 9200 0 12840 0 261117 0 0 0 BARBARA MICHELS 199454 0 30000 0 3201 0 8227 0 10074 0 250956 0 0 0 TIMOTHY DOYLE 177998 0 35000 0 240 0 6664 0 12557 0 232459 0 0 0 PETER MARKS 119908 0 31000 0 4783 0 6424 0 16161 0 178276 0 0 0 MARY BETH QUIST 148183 16465 15791 1755 592 66 6948 772 17643 1960 189157 21018 0 0 CHARLES CROSS 82862 82862 11250 11250 216 216 3216 3216 6536 6536 104080 104080 0 0 PART I, LINE 1A THE WRITTEN EMPLOYMENT CONTRACT THE CONFERENCE HAS WITH ITS PRESIDENT AND CEO INCLUDES, AMONGST OTHER THINGS, PROVISIONS FOR A GROSS-UP ON HIS POTENTIAL ANNUAL BONUS TO COMPENSATE FOR INCOME TAXES, AN ALLOWANCE FOR SPOUSAL TRAVEL ON BUSINESS-RELATED TRIPS UP TO AN ANNUAL MAXIMUM OF $5,000, AND AN ANNUAL MEMBERSHIP IN A GOLF CLUB. DURING 2010, THE PRESIDENT AND CEO RECEIVED AS TAXABLE COMPENSATION (1) A GROSS-UP PAYMENT OF $2,711, (2) $2,150 FOR SPOUSAL TRAVEL EXPENSES, AND (3) $4,800 FOR CLUB MEMBERSHIP FEES. PART I, LINE 4A CFO SHARON BIAS RESIGNED IN JULY 2010. AS A RESULT, THE CONFERENCE PAID HER SEVERANCE OF $48,987. NEW PROGRAM SERVICES FORM 990, PART III, LINE 2 IN JANUARY 2010, CSBS LAUNCHED NMLS CONSUMER ACCESS, A FULLY SEARCHABLE WEBSITE THAT ALLOWS THE PUBLIC TO VIEW INFORMATION ON OVER 25,000 COMPANIES AND CLOSE TO 500,000 INDIVIDUAL MORTGAGE LOAN ORIGINATORS (MLO'S) THAT ARE STATE-LICENSED OR FEDERALLY REGISTERED THROUGH THE NATIONWIDE MORTGAGE LICENSING SYSTEM AND REGISTRY (NMLS). NMLS CONSUMER ACCESS PROVIDES HOMEBUYERS AND THE GENERAL PUBLIC WITH GREATER INFORMATION FREE OF CHARGE CONCERNING THE COMPANIES AND PROFESSIONALS IN THE MORTGAGE INDUSTRY. CONTAINING ALL STATE-LICENSED AND FEDERALLY REGISTERED MLO'S ACROSS THE COUNTRY, NMLS CONSUMER ACCESS IS AN INVALUABLE PUBLIC RESOURCE. THE NMLS IS A WEB-BASED SYSTEM THAT ALLOWS (1) STATE LICENSED MORTGAGE LENDERS, MORTGAGE BROKERS, AND LOAN OFFICERS TO APPLY FOR, AMEND, UPDATE OR RENEW A LICENSE, AND (2) FEDERAL DEPOSITORY INSTITUTIONS AND THEIR INDIVIDUAL MORTGAGE LOAN ORIGINATORS TO REGISTER ONLINE THROUGH A SINGLE SET OF UNIFORM APPLICATIONS. FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE IS EMPOWERED TO ACT IN LIEU OF THE BOARD OF DIRECTORS BETWEEN SCHEDULED BOARD MEETINGS; HOWEVER, ALL ACTIONS TAKEN BY THE EXECUTIVE COMMITTEE SHALL BE APPROVED BY THE BOARD AT ITS NEXT SCHEDULED MEETING, AND THE EXECUTIVE COMMITTEE IS NOT EMPOWERED TO APPROVE SALARY CHANGES OR NON-BUDGETED EXPENSES ABOVE $5,000. THE EXECUTIVE COMMITTEE CONSISTS OF ALL SITTING OFFICERS OF THE BOARD OF DIRECTORS AS WELL AS THE IMMEDIATE PAST CHAIRMAN. FORM 990, PART VI, SECTION A, LINE 4 AT A SPECIAL MEMBERSHIP MEETING HELD ON OCTOBER 15, 2010, THE REGULAR VOTING MEMBERSHIP OF THE CONFERENCE APPROVED AMENDING THE CSBS ARTICLES OF INCORPORATION AND BYLAWS IN ORDER TO INCORPORATE VARIOUS CHANGES REFLECTING THE RESPONSIBILITIES THAT THE SAFE ACT, THE DODD-FRANK ACT, AND OTHER FEDERAL LAWS CONFER ON STATE REGULATORS AND TO BE CONSISTENT WITH OUR PLANNED APPLICATION TO CONVERT TO 501(C)(3) STATUS. FORM 990, PART VI, SECTION A, LINE 6 REGULAR VOTING MEMBERSHIP IN THE CONFERENCE IS LIMITED TO THE STATE OFFICER HAVING RESPONSIBILITY FOR THE SUPERVISION OF STATE-CHARTERED BANKING INSTITUTIONS IN EACH STATE, THE DISTRICT OF COLUMBIA, GUAM, PUERTO RICO, AND THE VIRGIN ISLANDS, OR A REPRESENTATIVE DULY DESIGNATED BY SUCH OFFICER WHO IS ALSO AN EMPLOYEE OF THE STATE BANKING DEPARTMENT OF THAT JURISDICTION. THE CONFERENCE'S OTHER CLASSES OF MEMBERSHIP, WHICH INCLUDE STATE-CHARTERED BANKING INSTITUTIONS, STATE BANKERS ASSOCIATIONS, AND ASSOCIATES, DO NOT HAVE AN OFFICIAL VOTE IN ANY MEETING OF THE CONFERENCE AND ARE NOT ELIGIBLE TO HOLD AN ELECTED OFFICE IN THE CONFERENCE. FORM 990, PART VI, SECTION A, LINE 7A THE OFFICERS OF THE CSBS BOARD OF DIRECTORS, WHICH INCLUDE THE CHAIRMAN, CHAIRMAN-ELECT, VICE CHAIRMAN, SECRETARY, AND TREASURER, ARE ELECTED BY THE REGULAR VOTING MEMBERSHIP AT THE ANNUAL MEETING OF THE CONFERENCE. ADDITIONALLY, THE REGULAR MEMBERS ARE DIVIDED INTO FIVE GEOGRAPHICAL DISTRICTS AND THEY ELECT A DISTRICT CHAIRMAN AND A DISTRICT VICE CHAIRMAN FROM THE REGULAR MEMBERSHIP IN EACH RESPECTIVE DISTRICT TO REPRESENT THE DISTRICT ON THE CSBS BOARD. FORM 990, PART VI, SECTION A, LINE 7B PROPOSALS FOR THE AMENDMENT OR REPEAL OF THE BYLAWS MAY BE MADE BY ANY TEN REGULAR MEMBERS OF THE CONFERENCE BY SUBMITTING A WRITTEN REQUEST SPECIFYING THE CHANGES PROPOSED TO THE CHAIRMAN OF THE BOARD OF DIRECTORS. ALL SUCH PROPOSALS WOULD THEN BE CONSIDERED BY THE MEMBERSHIP AT AN ANNUAL OR SPECIAL MEETING OF THE REGULAR MEMBERS, AND THE BYLAWS COULD BE AMENDED OR REPEALED BY A TWO-THIRDS VOTE OF THE REGULAR MEMBERS OR DULY DESIGNATED REPRESENTATIVES ENROLLED AS ATTENDING THE MEETING. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS THOROUGHLY REVIEWED BY THE CONFERENCE'S MANAGEMENT TEAM BEFORE IT IS FILED. THE CONFERENCE ALSO POSTS THE 990 ON THE BOARD'S WEBSITE AND EMAILS THE MEMBERS OF THE BOARD HOW TO ACCESS IT. FORM 990, PART VI, SECTION B, LINE 12C A REVISED CONFLICT OF INTEREST AND CONFIDENTIALITY POLICY WAS ADOPTED IN MARCH 2010 COVERING CSBS AND ITS AFFILIATED ORGANIZATIONS. AS PART OF THE POLICY, EACH YEAR ALL CSBS EMPLOYEES, MEMBERS OF THE BOARD OF DIRECTORS, AND MEMBERS OF COMMITTEES WITH GOVERNING BOARD DELEGATED POWERS ARE REQUIRED TO SIGN A STATEMENT THAT THEY HAVE READ AND UNDERSTAND THE POLICY AND THAT THEY AGREE TO COMPLY WITH THE POLICY. EACH FORM COMPLETED BY A CSBS EMPLOYEE WILL BE REVIEWED BY THE PRESIDENT AND CEO FOR POTENTIAL CONFLICTS, WHILE EACH FORM COMPLETED BY A MEMBER OF THE BOARD OF DIRECTORS OR COMMITTEE WITH GOVERNING BOARD DELEGATED POWERS WILL BE SUBMITTED TO AND REVIEWED BY THE CSBS AUDIT COMMITTEE FOR POTENTIAL CONFLICTS. FORM 990, PART VI, SECTION B, LINE 15 CSBS HAS A FORMAL POLICY STATING THAT THE PROCESS FOR DETERMINING THE COMPENSATION OF ITS OFFICERS AND KEY EMPLOYEES SHALL INCLUDE (1) REVIEW AND APPROVAL BY THE COMPENSATION COMMITTEE OF CSBS, (2) USE OF DATA AS TO COMPARABLE COMPENSATION, AND (3) CONTEMPORANEOUS DOCUMENTATION AND RECORDKEEPING. THE PERSONNEL AND COMPENSATION COMMITTEE OF THE CSBS BOARD OF DIRECTORS HAS BEEN ESTABLISHED IN THE BYLAWS AS A STANDING COMMITTEE, WHICH DEFINES THAT THE COMMITTEE'S PURPOSE IS TO RECOMMEND SALARY RANGES AND COMPENSATION FOR CSBS STAFF TO THE BOARD OF DIRECTORS FOR APPROVAL AND TO CONDUCT AN ANNUAL PERFORMANCE APPRAISAL OF THE PRESIDENT. FORM 990, PART VI, SECTION C, LINE 19 CSBS MAKES ITS CONSOLIDATED AUDITED FINANCIAL STATEMENTS AVAILABLE TO THE GENERAL PUBLIC THROUGH ITS WEBSITE. IN ADDITION, CSBS' DISREGARDED ENTITY, STATE REGULATORY REGISTRY LLC, HAS ITS OWN SEPARATE AUDITED FINANCIAL STATEMENTS WHICH ARE AVAILABLE UPON REQUEST. CSBS DOES NOT MAKE ITS GOVERNING DOCUMENTS OR CONFLICT OF INTEREST POLICY PUBLICLY AVAILABLE; HOWEVER, CSBS WOULD CONSIDER ANY REQUESTS RECEIVED FOR SUCH DOCUMENTS. CONTACT ADDRESSES FOR OFFICERS, DIRECTORS, ETC FORM 990, PART VII SHARON G. BIAS - 177 BALTUSOL DRIVE, CHARLES TOWN, WV 25414. FORM 990, PART VII, SECTION A, LINE 1A: CERTAIN OFFICERS, KEY EMPLOYEES, AND HIGHLY COMPENSATED EMPLOYEES LISTED IN PART VII AND ON SCHEDULE J OF THE RETURN ALSO PARTICIPATE IN THE CONFERENCE OF STATE BANK SUPERVISORS PENSION PLAN, WHICH IS A QUALIFIED DEFINED BENEFIT PENSION PLAN. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 138,555. FORM 990, PART XII, LINE 2C: THE CONFERENCE'S AUDIT REVIEW PROCESS HAS REMAINED UNCHANGED FROM THE PRIOR YEAR. STATE REGULATORY REGISTRY LLC 1129 20TH STREET NW 9TH FLOOR WASHINGTON DC 20036 205641694 THE DEVELOPMENT AND OPERATION OF THE NATIONWIDE MORTGAGE LICENSING SYSTEM DC 67299744 29414002 CONFERENCE OF STATE BANK SUPERVISORS INC EDUCATION FOUNDATION OF STATE BANK SUPERVISORS 1129 20TH ST NW 9TH FLOOR WASHINGTON DC 20036 521347951 TO ENHANCE STATE FINANCIAL SUPERVISION THROUGH EDUCATION AND TRAINING DC 501(C)(3) LINE 9 COMMON CONTROL WITH CSBS 0 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 0 EDUCATION FOUNDATION OF STATE BANK SUPERVISORS B 511000 CASH EDUCATION FOUNDATION OF STATE BANK SUPERVISORS M 143739 ALLOCATION EDUCATION FOUNDATION OF STATE BANK SUPERVISORS N 949875 ALLOCATION EDUCATION FOUNDATION OF STATE BANK SUPERVISORS O 49496 CASH EDUCATION FOUNDATION OF STATE BANK SUPERVISORS P 335268 CASH EDUCATION FOUNDATION OF STATE BANK SUPERVISORS Q 1161400 CASH