Thread Options
|
#1218767 - 07/17/09 07:39 PM
SAFE Act licensing requirements
|
Junior Member
Joined: Sep 2005
Posts: 36
|
Our bank has loan officers that act as brokers, but also originate loans for the bank. We also have branch managers that take HELOC loan applications and close the loans. The loan officers are licensed state brokers. Will the loan officers and the branch managers also need to contact the state for licensing under the SAFE Act by January 1, 2010 to continue to originate loans within the bank? We are told this is a costly process
|
Return to Top
|
|
|
|
#1218848 - 07/17/09 08:44 PM
Re: SAFE Act licensing requirements
Queen Mum
|
Power Poster
Joined: Nov 2001
Posts: 7,985
FINALLY ABOVE the gnat line
|
It is my understanding that anyone who makes or services a consumer real estate loan will have to at least register.
_________________________
"Once you learn to read, you will be forever free." - Frederick Douglass
My Opinion Only.
|
Return to Top
|
|
|
|
#1218893 - 07/17/09 09:47 PM
Re: SAFE Act licensing requirements
waldensouth
|
Power Poster
Joined: Dec 2002
Posts: 4,617
SC
|
It is my understanding that anyone who makes or services a consumer real estate loan will have to at least register. So the loan operations/servicing department will also have to register?
_________________________
|
Return to Top
|
|
|
|
#1218898 - 07/17/09 10:06 PM
Re: SAFE Act licensing requirements
Cowboys Fan
|
Power Poster
Joined: Mar 2001
Posts: 3,920
OK
|
|
Return to Top
|
|
|
|
#1218899 - 07/17/09 10:07 PM
Re: SAFE Act licensing requirements
Cowboys Fan
|
Power Poster
Joined: Aug 2002
Posts: 3,094
|
Under the S.AF.E. Act, a mortgage loan originator must be Federally-registered if that individual is an employee of a depository institution, an employee of any subsidiar owned and controlled by a depository institution and regulated by a Federal banng agency, or an employee of an institution regulated by the Farm Credit Administration.
_________________________
Opinions are my own and not of my employer.
|
Return to Top
|
|
|
|
#1219266 - 07/20/09 05:23 PM
Re: SAFE Act licensing requirements
ahou
|
Georgia Plum
Unregistered
|
I thought this was out for comment on employees of FIs being required to be licensed??
|
Return to Top
|
|
|
|
#1219279 - 07/20/09 05:33 PM
Re: SAFE Act licensing requirements
|
10K Club
Joined: Aug 2002
Posts: 47,561
Bloomington, IN
|
Being licensed and registered are two different things. Your state will determine whether they have to be licensed or not but if they meet the definition of a mortgage loan originator, which most of them will, they will have to register under the SAFE Act. So the loan operations/servicing department will also have to register?
Loan Secretaries too?? I would find it doubtful these people would meet the definition of a mortgage loan originator.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
|
Return to Top
|
|
|
|
#1220639 - 07/22/09 05:59 PM
Re: SAFE Act licensing requirements
Dan Persfull
|
10K Club
Joined: Mar 2006
Posts: 10,392
Curled up by the fire...
|
So, I want to make sure that I have full understanding here. Any Loan Officers of the Bank or it's subsidiaries that make a consumer purpose loan secured by a deed of trust on a residence must be registered? We have LO's at branches that take apps but we have a consumer department that does all the underwriting/originating. So the LO's at the branches - No. Consumer Dept. - Yes
Thank you in advance for your help!!
_________________________
Take responsibility for your life.
|
Return to Top
|
|
|
|
#1220681 - 07/22/09 06:41 PM
Re: SAFE Act licensing requirements
Mrs. Rizzo
|
10K Club
Joined: Aug 2002
Posts: 47,561
Bloomington, IN
|
It will depend on what the loan officers at the branch do when they take an application. Are they paid for referring the application to the consumer department, do they negotiate the initial term and rate applied for?
Again if they meet the definition of a mortgage loan originator they will have to register as I understand it.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
|
Return to Top
|
|
|
|
#1220689 - 07/22/09 06:51 PM
Re: SAFE Act licensing requirements
Dan Persfull
|
10K Club
Joined: Mar 2006
Posts: 10,392
Curled up by the fire...
|
Well, they are paid as part of their job but not any special referral fee for them. The LO's at the branches are the go between for our consumer loan department. Any negotiating is done on behalf of them. What are your thoughts on that type of situation?
Maybe it would be best just to do it????
_________________________
Take responsibility for your life.
|
Return to Top
|
|
|
|
#1220716 - 07/22/09 07:23 PM
Re: SAFE Act licensing requirements
Mrs. Rizzo
|
10K Club
Joined: Aug 2002
Posts: 47,561
Bloomington, IN
|
Rizz, with everything going on here I haven't had a chance to read the new release. Everything I'm referring too is from what I remember reading back in Sept or Oct of last year.
If all they are are application takers and they do not negotiate rate or terms, nor are they compensated (other than their normal salary) then I do not think they would meet the definition of mortgage loan originator as I remember it being defined.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
|
Return to Top
|
|
|
|
#1220737 - 07/22/09 07:51 PM
Re: SAFE Act licensing requirements
Dan Persfull
|
Diamond Poster
Joined: May 2005
Posts: 1,813
Giant side of TX
|
I believe the thought that financial institution employees have to be compensated beyond their normal pay, is incorrect - See Below
The definition of Mortgage Loan Originator under 12 CFR 208.102 (b) Includes the phrase " . . . for compensation or gain". That is most likely where the thought that this would only mean commissioned employees, comes from. BUT - Appendix A to Subpart I of 208, gives examples of what is and is not . . . 1- Taking an application and 2- Offering or negotiationg terms and Item (c) (1) in the Appendix says
"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.
_________________________
My opinions are just that, and might be worth what you paid for them.
|
Return to Top
|
|
|
|
#1220761 - 07/22/09 08:17 PM
Re: SAFE Act licensing requirements
ktac MITCH
|
10K Club
Joined: Aug 2002
Posts: 47,561
Bloomington, IN
|
Wow, I just did a quick read of Appendix A. Not as I remember it. It appears just about anyone touching a mortgage application in the application process is a mortgage loan originator.
I'm going to have to get some of this back logged stuff done and re-read this release.
Too bad it isn't 2018. I'd be signing my retirement papers.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
|
Return to Top
|
|
|
|
#1220768 - 07/22/09 08:24 PM
Re: SAFE Act licensing requirements
Dan Persfull
|
New Poster
Joined: Jun 2007
Posts: 4
|
If you work in Alabama and the home office is in Georgia. The MLO originates loans with properties in AL and GA.What state do you need to be licensed?
|
Return to Top
|
|
|
|
#1220778 - 07/22/09 08:32 PM
Re: SAFE Act licensing requirements
Dan Persfull
|
Power Poster
Joined: Jul 2002
Posts: 5,568
New Jersey
|
I'm with you, Dan: I wish I were turning 65 instead of 55! I also just now read carefully the regulation, and that blasted Appendix A seems to capture everyone in its net. I don't know who wrote the following sentence, but he or she is an idiot: "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." In other words, if you receive compensation in connection with the loan, you are judged to offer or negotiate "for compensation or gain." And if you do not receive compensation in connection with the loan, you are judged to offer or negotiate "for compensation or gain." See the difference? In addition, nowhere in the proposed rule is the term "loan offer" defined. Does that mean telling an applicant the current rates and terms? Does it mean a commitment to lend? Does it mean a preapproval? Does it mean a prequalification? Does it mean something else? Does it mean all of the above? The answer to that question will go a LONG way toward determining who is a mortgage originator under this proposed rule.
_________________________
Management is doing things right; leadership is doing the right things. Peter Drucker
|
Return to Top
|
|
|
|
#1220782 - 07/22/09 08:33 PM
Re: SAFE Act licensing requirements
jcfb
|
10K Club
Joined: Mar 2006
Posts: 10,392
Curled up by the fire...
|
If you work in Alabama and the home office is in Georgia. The MLO originates loans with properties in AL and GA.What state do you need to be licensed? I'm pretty sure it's just the state where the origination takes place. Otherwise, you'd have to be registered all over.
_________________________
Take responsibility for your life.
|
Return to Top
|
|
|
|
#1220785 - 07/22/09 08:35 PM
Re: SAFE Act licensing requirements
Mrs. Rizzo
|
10K Club
Joined: Mar 2006
Posts: 10,392
Curled up by the fire...
|
Somebody please remind me why I'm in compliane!!! Wal-Mart greeter is lookin' pretty good right about now.
_________________________
Take responsibility for your life.
|
Return to Top
|
|
|
|
#1220826 - 07/22/09 09:14 PM
Re: SAFE Act licensing requirements
Mrs. Rizzo
|
10K Club
Joined: Mar 2006
Posts: 10,392
Curled up by the fire...
|
What about this language? (2) Exception. (i) This subpar and the requirements of sections 1504(a)(1)(A) and (2) of the S.A.F .E. Act do not apply to any employee of an insured state nonmember ban if during the past 12 months: (A) The employee acted as a mortgage loan originator for 5 or fewer residential mortgage loans; and (B) The insured state nonmember ban employs mortgage loan originators who, while excepted from registration pursuant to paragraph (c)(2)(i)(A) of this section, in the aggregate, acted as a mortgage loan originator in connection with 25 or fewer residential mortgage loans. 62 (ii) Prior to engaging in mortgage loan origination activity that exceeds either the individual or the aggregate exception limit, an insured state nonmember bank employee must register with the Registr pursuant to this subpart.
_________________________
Take responsibility for your life.
|
Return to Top
|
|
|
|
#1220926 - 07/23/09 01:24 AM
Re: SAFE Act licensing requirements
Mrs. Rizzo
|
Power Poster
Joined: Jan 2008
Posts: 6,389
Looking for My Happy Place....
|
I believe from what I read - the registry is a national one (not at the state level). Mortgage loan officers at banks need to be registered, but not licensed.
_________________________
What would you do if you knew you could not fail? ~ Dr. R Schuller
My opinion only.
|
Return to Top
|
|
|
|
#1220972 - 07/23/09 12:13 PM
Re: SAFE Act licensing requirements
Retired DQ
|
Power Poster
Joined: Jul 2002
Posts: 5,568
New Jersey
|
DQ, reread the first paragraph of Dan's post #1220761 above. You may be registering more employees than you think.
_________________________
Management is doing things right; leadership is doing the right things. Peter Drucker
|
Return to Top
|
|
|
|
#1220982 - 07/23/09 12:26 PM
Re: SAFE Act licensing requirements
Retired DQ
|
10K Club
Joined: Dec 2002
Posts: 40,766
Turnpike Exit 10
|
The following information is from 7/20/09 Compliance Source from ABA
ABA has received multiple calls and e-mails regarding the S.A.F.E. Mortgage Licensing Act of 2008 Act and a supposed mandatory registration date of December 31, 2009 for loan originators employed by banks. This is not the case. Although the statute requires the registration of loan originators employed by banks, the regulation outlining the mechanism to accomplish this has not yet been established and no compliance date has been set. However, if you operate a state licensed mortgage broker or non-bank lender, then the appropriate employees of such an entity will need to be licensed according to the time-table and standards implemented by the state in question.
The relevant joint Notice of Proposed Rulemaking covering bank employed mortgage originators was published on June 9, 2009. Because of the complex technical issues involved in creating the registry, 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. To date, the final rule has not been issued and the Registry is not operational. In addition, ABA submitted its comment letter on July 9, 2009, and in that letter ABA urged the agencies to extend the implementation period to a minimum of 9 months, if not longer, once the registration system is operational, to allow banks time to adjust and adapt systems and procedures.
_________________________
Get your facts first, then you can distort them as you please. - Mark Twain
|
Return to Top
|
|
|
|
#1221373 - 07/23/09 04:55 PM
Re: SAFE Act licensing requirements
Mrs. Rizzo
|
Power Poster
Joined: Nov 2008
Posts: 4,132
Somewhere in the middle
|
I agree with Deekles and Tigg,
I read the same thing, "Although the statute requires the registration of loan originators employed by banks, the regulation outlining the mechanism to accomplish this has not yet been established and no compliance date has been set... To date, the final rule has not been issued and the Registry is not operational."
So in my mind, we will only be registering, but not until the system is ready.
_________________________
I'm only responsible for what I say, not for what you understand.
|
Return to Top
|
|
|
|
|
|