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#1190982 - 05/27/09 06:08 PM SAFE ACT
tickledpink Offline
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Has there been any guidelines issued by FFIEC yet?

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#1191910 - 05/28/09 06:14 PM Re: SAFE ACT tickledpink
Amos Offline
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I haven't seen anything yet.

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#1191978 - 05/28/09 07:05 PM Re: SAFE ACT tickledpink
Reads Regs Offline
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The FDIC's meeting notice for their 5/29 10:00 a.m. meeting mentions that they will be discussing an interagency notice of proposed rulemaking to implement the Secure and Fair Enforcement for Mortgage Licensing Act of 2008.

See page 25537 of today's Federal Register for the notice. You can also view it on the FDIC's web site. http://www.fdic.gov/news/board/noticeMAY292009.html

After the meeting concludes, the FDIC usually updates the notice with hyperlinks to the documents discussed at the meeting.
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#1193618 - 06/01/09 02:50 PM Re: SAFE ACT Reads Regs
tickledpink Offline
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Thank you

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#1193760 - 06/01/09 05:23 PM Re: SAFE ACT tickledpink
Patsy Cline Offline
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On the road...

The FDIC Board on Friday proposed an interagency rule that would implement the enforcement of mortgage registration and licensing requirements. Registration, but not licensing, will be required for loan originators at federally regulated depository institutions and subsidiaries, which will maintain an employee registry. All other loan originators will be licensed by a state and registered in a registry.

Each loan originator will be assigned a unique identifier. Employees will be required to provide and update personal information, including employment history and publicly adjudicated disciplinary and enforcement actions, which can be publicly accessed. Fingerprints will be required for background checks the FBI will conduct.

There will be 30-day comment period on the rule following its publication in the Federal Register. The rule is scheduled to take effect on July 29, with implementation delayed for 180 days after the registry becomes operational.
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#1194231 - 06/02/09 01:46 PM Re: SAFE ACT Patsy Cline
tickledpink Offline
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Appears that due to complex technical issues and legal issues, the registry will not be available until the 2nd quarter 2010. At least we have a little breathing room.

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#1194256 - 06/02/09 02:15 PM Re: SAFE ACT tickledpink
Cale_N_Oats Offline
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So, even if my loan officers don't receive commission on the loans they make they still have to be registered?

"(1) Offering or negotiating terms of a loan for compensation or gain includes engaging in any of the activities in paragraph (b)(1) of this Appendix in the course of carrying out employment duties, even if the employee does not receive a referral fee or commission or other special compensation for the loan."
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#1194304 - 06/02/09 03:14 PM Re: SAFE ACT tickledpink
DD Regs Offline
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Somewhere in the middle
Tickelpink, can you provide a link to your source that compliance is 2nd qrter 2010?
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#1194537 - 06/02/09 05:52 PM Re: SAFE ACT DD Regs
Tigg Offline
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Czervik - that's the way I read it.

I'm also reading this as similar to the MDIA rules in that it is already law and just about nailing down the details on how to make banks comply.

Anyone else?
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#1194572 - 06/02/09 06:10 PM Re: SAFE ACT Tigg
waldensouth Offline
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FINALLY ABOVE the gnat line
This is from the notice released yesterday. It hasn't been published in the FRB yet - comment period is for 30 days after that. It would at least be 1st quarter next year if the federal registry is available/working properly at publication of the final rule.


Because modification of the Registry to accept Federal registrations involves complex technical issues, the proposed rule provides for a delay in implementation of the registration requirements until 180 days after the Registry becomes operational and available for initial Federal registrations.

The Federal Register notice and proposed rule are attached. The proposal will soon be published in the Federal Register and the comment period will end 30 days thereafter.
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#1194912 - 06/03/09 10:54 AM Re: SAFE ACT waldensouth
DeeQ Offline
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From the ABA Bulletin this morning:

Federal Agencies Propose Rule to Implement SAFE Act Registration Requirements

On June 1, 2009, Federal agencies announced the issuance of proposed rules to implement the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). This proposal would effectuate the SAFE Act’s requirement that agencies jointly develop and maintain a system for registering residential mortgage loan originators who are employees of agency-regulated institutions, including national and State banks, savings associations, credit unions, and Farm Credit System institutions, and certain of their subsidiaries. (Under the SAFE Act, mortgage loan originators employed by depository institutions must be registered with the Nationwide Mortgage Licensing System and Registry (Registry), a database established by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators to support the licensing of mortgage loan originators by the States.)



The proposal, which is being issued jointly by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of Thrift Supervision, Farm Credit Administration, and National Credit Union Administration, establishes the registration requirements for mortgage loan originators employed by federally regulated institutions, as well as adoption of policies and procedures to ensure compliance with the S.A.F.E Act and final rule. The proposal requires mortgage loan originators to obtain a unique identifier through the Registry, and requires these originators to provide the identifier to consumers in certain specified circumstances.



According to the announcement, the proposed rule will soon be published in the Federal Register and contain a comment period of 30 days. The Agencies clarify the following important points in the announcement—



(1) Full implementation of the registration requirements will be delayed until 180 days after the Registry becomes operational and available for initial federal registrations.

(2) The proposal sets forth certain de-minimis exemptions for institutions that engage in small origination volumes (5 or less originations per employee, but only in cases where the institution originates 25 or fewer loans per year).

(3) Loan modification activity is proposed to be covered as an “origination activity,” and therefore subject to registration. The Federal agencies solicit industry comment on this definition.

(4) Individual employees will be required to provide the information mandated by the Act, and institutions are specifically ordered to require their originating employees to register. Although employees will attest to the correctness of all information, banking institutions must implement policies and procedures to confirm the adequacy and accuracy of the employee’s information submissions.

(5) Mortgage originators must renew registrations annually.

To access a draft of the proposed rule, go to http://www.federalreserve.gov/newsevents/press/bcreg/20090601a.htm



For more information, contact ABA’s Rod Alba.
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#1195171 - 06/03/09 04:23 PM Re: SAFE ACT DeeQ
Vander Offline
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So am I correct that this will apply to any loan officer who takes and application and offers or negotiates terms (as outlined in the Appendix)? Would this still apply if we do not sell loans to secondary market and keep all loans in-house?

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#1195214 - 06/03/09 04:55 PM Re: SAFE ACT Vander
Amos Offline
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It doesn't matter whether or not you keep your loans or sell them.

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#1195427 - 06/03/09 07:50 PM Re: SAFE ACT Amos
Sage Offline
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Do you plan to register your "customer service" type employees? It would be overkill for us in some cases but some of those people do take the application and discuss rates with the applicant. They also handle the interest rate modification contacts.

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#1197206 - 06/08/09 01:37 PM Re: SAFE ACT Sage
angels2mom Offline
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Depends on my mood
So do I understand correctly that compliance is to follow the rules of the SAFE Act licensing requirements, meaning loan officers will have to meet the educational requirements as well as provide fingerprints and background checks?
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#1197217 - 06/08/09 01:54 PM Re: SAFE ACT angels2mom
RR Joker Offline
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yes, at least that's how I read it.
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#1197359 - 06/08/09 05:11 PM Re: SAFE ACT waldensouth
tickledpink Offline
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DD REGS, I listened to the FDIC board meeting of 5/29/09. They stated the Registry will not be ready until 2nd qtr 2010 due to complex technical and legal issues.

We are now discussing what we need to do with Branch employees who do take applications.

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#1197405 - 06/08/09 05:56 PM Re: SAFE ACT tickledpink
Princess Romeo Offline

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I think a lot of small shops (small community based banks) will simply exit the consumer home loan market entirely. It is becoming too costly and too cumbersome for many small institutions to even bother with this type of credit.

The sad part is, a consumer stood a much better chance of being treated fairly at a local community bank than they probably will at a large multi-state lender with all sorts of "registered" and "licensed" orginators.

I do wish someone would consider the notion of a deminimum threshold for small insured depository institutions that would exempt them from these requirements. Most of these small shops get over-scruitinized during their regulatory exams anyways.
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#1197421 - 06/08/09 06:12 PM Re: SAFE ACT Princess Romeo
angels2mom Offline
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Depends on my mood
I'm really having a hard time wrapping my head around this. While it will be an inconvenience to have to have my loan officers fingerprinted and backgrounds checks completed it is tolerable. However, I simply can't understand sending them to educational courses that for one are not an issue for our shop (2 hours of training related to standards for non-traditional mtgs). We don't do these loans and have no intention of starting them.
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#1197593 - 06/08/09 08:50 PM Re: SAFE ACT angels2mom
Sewanee, CRCM Offline
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As I understand it, the education requirement is only for state-licensed originators. Those who are employed by federally-regulated institutions would have to be registered, but would not be subject to the same educational requirements. Does anybody else see it that way?
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#1197640 - 06/08/09 09:21 PM Re: SAFE ACT Sewanee, CRCM
Kahola Offline
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Sewanee,

Yes you are right.

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#1197779 - 06/09/09 01:08 PM Re: SAFE ACT Kahola
tickledpink Offline
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Can someone reference the page in the proposal that discusses the educational requirements.

Thanks

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#1197812 - 06/09/09 01:47 PM Re: SAFE ACT tickledpink
ahou Offline
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I couldn't find any reference to education requirements in the Fed Register version.
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#1197862 - 06/09/09 02:40 PM Re: SAFE ACT ahou
Sewanee, CRCM Offline
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TN
Is anyone else concerned about the required diclosure to consumers, through the Registry's website, of "registered loan originator's" employment history. It would seem that level of detailed information could open up our employees to the possibility of identity theft.

Is that a reasonable concern?
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#1197866 - 06/09/09 02:44 PM Re: SAFE ACT Sewanee, CRCM
tickledpink Offline
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I cannot find any reference to the education requirements, that is why I was asking for a page #.

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