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#1112828 - 01/16/09 08:47 PM S.A.F.E. Housing and Economic Recovery ACT
2old2care Offline
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Joined: Oct 2006
Posts: 712
PA
The requirements of the S.A.F.E. Mortgage Licensing Act will apply to our loan originators. I am just not sure yet if it will be under the state or federal requirements. Sec. 1507 (see below) addresses the system for registering the employees of depository institutions under Federal banking agencies, but I have not seen anything to date where the FDIC has addressed this. We qualify under the federal criteria as a depository institution; but since we are chartered by the state, we could fall under their requirements. We have currently been exempt under state law because our loan originators have been employees of a depository institution that is regulated by a Federal banking agency. Will Ohio legislation need to be modified as well to include employees of depository institutions.

Any thoughts?

Sec. 1507. System of registration administration by Federal banking agencies.

Within one year of the enactment (July 30, 2008), the Federal banking agencies (through the FFIEC) together with the Farm Credit Administration will jointly develop and maintain a system for registering the employees of depository institutions, the subsidiaries that the depository institutions “own and control” and institutions regulated by the Farm Credit Administration, as registered loan originators with the NMLSR, and will furnish or cause to be furnished to the NMLSR certain information including fingerprints and personal history and experience. The Federal banking agencies, through the FFIEC together with the Farm Credit Administration, will coordinate with the NMLSR to establish a unique identifier for all registered loan originators and data and functionality requirements for registration through the system.

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#1113084 - 01/17/09 12:45 AM Re: S.A.F.E. Housing and Economic Recovery ACT 2old2care
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
As far as I know the FFIEC has not issued any regulations regarding this issue. They have until July of 2009 to issue regulations.
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#1113389 - 01/20/09 01:54 PM Re: S.A.F.E. Housing and Economic Recovery ACT rlcarey
2old2care Offline
Platinum Poster
Joined: Oct 2006
Posts: 712
PA
Thank you once again. You are a valuable source and I appreciate your assistance and BOL.

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#1118051 - 01/28/09 04:47 PM Re: S.A.F.E. Housing and Economic Recovery ACT rlcarey
2old2care Offline
Platinum Poster
Joined: Oct 2006
Posts: 712
PA
Response from the Ohio Bankers League:
The short answer is that all mortgage loan originators will have to be registered, including employees of FDIC depositories as well as credit unions. All other lenders and originators will have to go the extra step of getting licensed, which is more expensive, burdensome and requires continuing education.

The state law you referred to was passed in 2007 & did a better job protecting employees of banks and thrifts. The federal law was passed last year, and by that time mortage defaults were much higher and Congress wanted to be much broader with its response. The rational for the expanded registration requirement was that the policymakers didn't want originators fading in and out of the system merely by changing employers.

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