Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act)

by Tim Herriage

Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act)

by Tim Herriage

by Tim Herriage

Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act)

 

  • The SAFE Act improves the accountability and tracking of residential mortgage loan originators (MLOs), enhances consumer protection, reduces fraud, and provides consumers with easily accessible information regarding the professional background of MLOs.
  • The rule will implement the requirements of Section 1507 of the SAFE Act and will apply to insured state nonmember banks (including state-licensed insured branches of foreign banks), their subsidiaries and employees of such banks or subsidiaries who act as MLOs.
  • The rule:
    • tracks the SAFE Act definition of an MLO and provides examples of when a person is or is not acting as an MLO;
    • requires employees of insured state nonmember banks and their subsidiaries who act as MLOs to register with the Nationwide Mortgage Licensing System and Registry (NMLSR);
    • requires institutions and MLOs to provide certain information to the NMLSR, including MLO fingerprints (to run a criminal background check);
    • allows de minimis exceptions to the registration requirements for low-volume MLOs;
    • requires appropriate written policies and procedures for ensuring compliance with the rule and establishes minimum standards for such policies and procedures; and
    • explains how an MLO's unique identifier must be disclosed.
  • The draft final rule is publicly available and has been posted on the FDIC's Web site at http://www.fdic.gov/news/board/2009nov12no8.pdf. When finalized, this rule will be added as a new subpart B to Part 365 of the FDIC's Rules and Regulations (12 C.F.R. Part 365).

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Top